# Investing in Treasuries ### 🗺️Overview By subscribing to a Treasury, tokenholders access below-market management fees, full transparency, complete investor control, and superior alpha potential. All Treasuries are structured similarly to traditional open-end mutual funds and are not traded on the market. Investors looking to subscribe to a Treasury send their contributions through the Daımon investor portal. ### 🔃Subscription and Redemption By contributing to a Treasury, investors interact directly with a smart contract that confirms the investment and automatically apportions the capital to the underlying asset allocation determined by the Management Castle at that given time. Similarly, upon redemption, the smart contract automatically redistributes the corresponding value of all the underlying assets to the investor. ### 🪙fTokens In exchange for the initial investment, the investor receives a number of vefTokens. Upon interaction, vefTokens are instantly minted by the smart contract at the prevailing [Net Asset Value (NAV)](https://www.investopedia.com/terms/n/nav.asp) of the Treasury, which in turn is based on the portfolio's underlying on-chain asset price. Similarily, upon redemption, veTokens are burned and removed from circulation. All vefTokens are constituted by the non-fungible standard, representing the fully collateralised basket of underlying digital assets of each portfolio. The price of each vefToken is given by an in-built on-chain pricing mechanism that divides the Net Asset Value of the Treasury (including liabilities) by the number of issued vefTokens currently in circulation. ### ⚙️Pricing Mechanism The price is given by the following formula, where *TPx* is the vefToken price for Treasury *X, NAVx* is the Net Asset Value*, Lx* is the total number of liabilities owned*,* and *CSx* is the circulating supply (number of outstanding shares): ![](/files/YJWooekGagvpLqyOcoY4) --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.daimon.finance/investor-guide/investing-in-treasuries.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.