Series

Series are an accounting mechanism that ensures performance fees are only charged on gains a restaker actually experienced. Each series tracks a separate entry point into a Vault's share classc.

Series isolate restakers by entry point. Each series has its own high-water mark, set at the NAV when that series was created. Performance fees for that series are calculated against its own baseline, not the Vault-wide high-water mark.

High-Water Mark (HWM)

The High-Water Mark (HWM) is the price-per-share (PPS) threshold that a series must exceed before any performance fee can be charged. If the current PPS is equal to or less than the series' HWM, no performance fee is accrued for that series.

Types of Series

  • Lead Series (ID 0): The foundational series for a share class. Over time, other series may be consolidated back into the lead series for operational efficiency.

  • Outstanding Series (ID ≥ 1): Created to isolate new investors during periods when the lead series PPS is below its HWM. Each additional series begins with its own HWM baseline to ensure new entrants are not charged performance fees on gains they did not participate in.

Creation of New Series

An additional series is automatically created during the settlement process only when all of the following conditions are met:

  1. The share class has a non-zero performance fee.

  2. The lead series' current PPS is below its HWM.

  3. There are new pending deposits to settle in the current cycle.

Consolidation

When a new high watermark is set for lead series and there are outstanding series, all series are consolidated into the lead series

  1. User shares are converted proportionally during consolidation to maintain fair value

  2. This mechanism ensures proper performance fee calculation while maintaining operational efficiency

alETH Fungibility

Despite series tracking different entry points internally, alETH remains fungible. All alETH for a given asset-vault combination is the same token. The series mechanism is internal Vault accounting - it doesn't fragment the token itself.

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