# Portfolio Valuation

### **Total Asset Value Calculation**

The Term Strategy Vault's implementation of `_harvestAndReport()` calculates the total asset value by invoking `_totalAssetValue()`. This function updates the `totalAssets` value in the BaseStrategy and provides a comprehensive view of the portfolio’s value. It aggregates three components:

1. **Idle Liquidity**: The balance of idle funds held within the idle vault.
2. **Repo Token Holdings**: The present value of active repoToken positions, discounted using rates from the `discountRateAdapter`.
3. **Pending Auction Offers**: The present value of any pending auction offers, assuming those offers are filled.

### Total Value Implementation

The `_totalAssetValue()` function aggregates these components to calculate the total portfolio value:

```solidity
function _totalAssetValue(uint256 liquidBalance) internal view returns (uint256) {        
    return
        liquidBalance +  // Yearn vault + idle balance
        repoTokenListData.getPresentValue(  // Active repo token positions
            strategyState.discountRateAdapter,
            PURCHASE_TOKEN_PRECISION
        ) +
        termAuctionListData.getPresentValue(  // Pending auction offers
            repoTokenListData,
            strategyState.discountRateAdapter,
            PURCHASE_TOKEN_PRECISION,
            address(0)
        );
}
```

**Key Components**

**1. Repo Token Holdings**

* Managed by the `RepoTokenListData` struct:

  ```solidity
  struct RepoTokenListData {
      address head;
      mapping(address => RepoTokenListNode) nodes;
      mapping(address => uint256) discountRates;
      mapping(address => uint256) collateralTokenParams;
  }
  ```
* **Purpose**:
  * Maintains a linked list of repo tokens held by the vault.
  * Tracks discount rates and collateral parameters for each token.

***

**2. Discount Rate Adapter**

* **Interface**: `ITermDiscountRateAdapter`
* **Purpose**:
  * Serves as an interest rate oracle for Term repoTokens.
  * Applies redemption haircuts to account for bad debt risks.

***

**3. Pending Offers**

* Managed by the `TermAuctionListData` struct:

  ```solidity
  struct TermAuctionListData {
      bytes32 head;
      mapping(bytes32 => TermAuctionListNode) nodes;
      mapping(bytes32 => PendingOffer) offers;
  }
  ```
* **Purpose**:
  * Tracks all pending auction offers.
  * Estimates the present value of pending offers, assuming they are filled.

**Present Value Calculation**

The portfolio valuation uses:

* RepoToken face value adjusted by redemptionValue
* Actual/360 day count convention from current time to redemptionTimestamp
* Market rates from Term auctions plus configurable markup

Base Formula:

```solidity
timeLeftToMaturityDayFraction = ((redemptionTimestamp - block.timestamp) * purchaseTokenPrecision) / THREESIXTY_DAYCOUNT_SECONDS;

presentValue = (repoTokenAmountInBaseAssetPrecision * purchaseTokenPrecision) / 
    (purchaseTokenPrecision + (discountRate * timeLeftToMaturityDayFraction / RATE_PRECISION));
```


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