Proportional Stake

Position Tracking Architecture

Rank's internal accounting system maintains precise records of each investor's proportional ownership within strategy vaults. Unlike tokenized approaches, the platform tracks positions through on-chain state management, ensuring accurate PnL attribution without issuing transferable shares.

Entry Mechanics

Proportional Allocation

When investors deposit into a Strat, the platform calculates their ownership percentage:

• Initial Pool Entry: First investor owns 100% of the strategy pool

• Subsequent Deposits: Ownership percentage determined by contribution relative to existing pool value

• Real-Time Valuation: Entry point captured at current net asset value preventing dilution

Position Recording

The platform maintains immutable records containing:

• Deposit Amount: Exact assets contributed to the strategy

• Entry NAV: Pool value per unit at time of deposit

• Ownership Percentage: Proportional claim on total pool assets

• Timestamp: Block number for historical performance tracking

Dynamic Rebalancing

Continuous Adjustment

As strategies execute trades, proportional ownership remains constant while absolute values fluctuate:

• Profit Scenarios: All investors' positions increase proportionally

• Loss Scenarios: Drawdowns distributed based on ownership percentage

• Fee Deduction: Management and performance fees reduce positions proportionally

Multi-Deposit Handling

Investors adding to existing positions:

• Weighted Average Entry: Platform recalculates blended cost basis

• Maintained History: Complete record of all deposits preserved

• Accurate Attribution: Each deposit tracked separately for performance calculation

PnL Calculation

Individual Performance

The platform computes returns specific to each investor's entry timing:

• Unrealized Gains: Current pool value multiplied by ownership percentage minus deposits

• Time-Weighted Returns: Performance calculated from individual entry points

• Fee-Adjusted Results: Net returns after platform and strategy creator fees

Withdrawal Processing

Upon exit, the platform:

• Calculates Final Value: Ownership percentage multiplied by current pool NAV

• Determines Performance: Total withdrawal minus original deposits

• Updates Records: Adjusts remaining investors' proportional ownership

Advanced Tracking Features

High-Water Mark System

• Personal Benchmarks: Each investor maintains individual high-water mark

• Performance Fee Timing: Fees charged only when surpassing previous peaks

• Loss Recovery: No performance fees during drawdown recovery periods

Complex Scenarios

The system handles:

• Partial Withdrawals: Proportional reduction maintaining accurate cost basis

• Strategy Migrations: Position tracking across strategy versions

• Emergency Exits: Fair value distribution during strategy wind-downs

Transparency Mechanisms

On-Chain Visibility

All position data remains publicly auditable:

• Deposit Events: Entry amounts and timing recorded immutably

• Performance History: Complete track record accessible via blockchain

• Fee Attribution: Transparent breakdown of all charges

Reporting Infrastructure

• Individual Dashboards: Real-time position values and historical performance

• TX Documentation: Detailed transaction history for users' reference

• Performance Analytics: Comprehensive metrics comparing entry timing impacts

This architecture ensures mathematical precision in return attribution while maintaining the simplicity of pooled investment strategies. Every investor receives exactly their proportional share of strategy performance, with complete transparency and no possibility of manipulation.