> ## Documentation Index
> Fetch the complete documentation index at: https://docs.redpotion.finance/llms.txt
> Use this file to discover all available pages before exploring further.

# Fund shares

> Every Red Potion fund has its own share token — a standard ERC-20 called FundShare, with 18 decimals. Holding shares represents a pro-rata claim on everything the fund holds, value

Every Red Potion fund has its own **share token** — a standard ERC-20 called [FundShare](/developers/contract-reference/fund-share), with 18 decimals. Holding shares represents a pro-rata claim on everything the fund holds, valued at the latest oracle-reported price.

## What a share is worth

Your share balance stays fixed between transactions. What changes is the **price per share**, which moves with the fund's reported NAV. If the fund earns, each share is worth more of the underlying asset; if the fund takes a loss, each share is worth less.

Shares are priced as asset-per-share, scaled to 18 decimals:

```
shares received  = amount deposited × 1e18 / price
assets on redeem = shares × price / 1e18
```

## You hold them, and you can move them

FundShare is a normal, transferable ERC-20. Once shares are minted to you (after your deposit batch settles and you claim), they sit in your own wallet. You can transfer them, hold them, or use them wherever ERC-20s are accepted — subject to any fund-specific controls. Only the [Fund](/developers/contract-reference/fund) can mint or burn shares, and it does so exclusively inside settlement:

* **Minted** to you when your deposit batch settles.
* **Minted** to the fee recipient(s) when fees accrue (fees are always paid in shares — see [Fees](/using-redpotion/fees)).
* **Burned** from the fund when your redemption batch settles.

## How you get and give back shares

You never mint shares directly. The lifecycle is:

<Steps>
  <Step title="Deposit an asset">
    **Deposit** an asset into the [DepositQueue](/developers/contract-reference/deposit-queue). Your request joins the current batch.
  </Step>

  <Step title="Batch settlement">
    When the batch settles, the Fund mints the batch's shares to the queue.
  </Step>

  <Step title="Claim your shares">
    **Claim** your pro-rata share of that mint from the queue — now the shares are in your wallet.
  </Step>

  <Step title="Redeem and claim assets">
    To exit, **redeem** shares through the [RedeemQueue](/developers/contract-reference/redeem-queue); after the batch settles and is funded, **claim** your assets.
  </Step>
</Steps>

See [Depositing](/using-redpotion/depositing) and [Redeeming](/using-redpotion/redeeming) for the step-by-step timelines.

## Things worth knowing

* **Dilution from fees is expected.** Because management, performance, and protocol fees are paid by minting new shares to the fee recipient, your proportional ownership decreases slightly as those fees accrue. This is by design and disclosed in each fund's fee schedule.
* **Share price can fall.** A share is a claim on fund value, not a fixed redemption right. If strategies lose money, the reported price drops and your shares are worth less.
* **Claims never expire.** Once a batch settles, the shares owed to you remain claimable indefinitely — there is no deadline.