> For the complete documentation index, see [llms.txt](https://docs.dexponent.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.dexponent.com/understanding-dexponent.md).

# Understanding Dexponent

Dexponent connects strategy managers with LPs through DTFs: onchain vaults with a defined strategy and a share token.

A manager chooses a supported DTF type and manages its assets within the available controls. An LP selects a DTF, deposits its accepted base asset and receives shares. The value of those shares changes with the DTF's net asset value (NAV), including trading results and costs.

## Three ways to participate

| Role             | What you do                                                                               |
| ---------------- | ----------------------------------------------------------------------------------------- |
| LP               | Choose DTFs, deposit assets, monitor your position and request withdrawals.               |
| Manager          | Create a DTF, explain its strategy and risks, and manage its basket or trading positions. |
| Beta participant | Test supported flows and join reward campaigns when the team announces them.              |

An LP is providing capital to a DTF; this does not necessarily mean providing liquidity to an AMM.

## Example

A DTF has 10,000 USDC of net assets and 10,000 shares. Its indicative share value is 1 USDC. If net assets later rise to 11,000 USDC with the same share supply, a share is worth 1.10 USDC before any unaccounted fees. If net assets fall, share value falls too.

New deposits, withdrawals and fee-share issuance change the share supply. Use the latest transaction quote rather than assuming every share is always worth one unit of the base asset.

Read [DTF types](/dtf-types.md) and [how fees affect shares](/fees-and-costs.md).