# FAQ: Why is my position worth less than my deposit?

A position in a Fusion Vault trading below its initial deposit is typically an exception rather than the norm. Under normal market conditions, the vault’s share price tends to appreciate over time as the underlying strategy generates yield. That said, temporary deviations can occur.

The most common reason is the vault's strategy, which can cause short-term fluctuations in Net Asset Value (NAV). This is particularly true for strategies involving borrowing and swapping assets, especially those with leveraged looping. For instance, even minor shifts in a stablecoin's peg can lead to small, yet measurable, NAV fluctuations. Consider a scenario where the vault has borrowed USDC and swapped it for USDe. If the USDC/USDe exchange rate, as reported by the market price oracle, drops from 1.00 to 0.999, the vault's NAV will decrease. Consequently, the share price and the value of each user's position will also fall. The extent of this fluctuation depends on the vault's leverage. Historically, such exchange rate imbalances tend to normalize over time, as illustrated in the following example:

<div data-full-width="false"><figure><img src="https://3230227844-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FtCmHUPokv1qQ5OTCbUd2%2Fuploads%2FJMGKWWgSO1jy041yGAZu%2FCleanShot%202025-12-16%20at%2016.54.06%402x.png?alt=media&#x26;token=3da3ccf5-4ca9-405a-920f-68eff0a7296d" alt=""><figcaption></figcaption></figure></div>

See also:&#x20;

[Share Price Dynamics](https://app.gitbook.com/s/oaErR6oxxmjeJRJYOuXH/atomists/curating-a-fusion-vault/share-price-dynamics)

[Understanding Performance of a Vault](https://app.gitbook.com/s/oaErR6oxxmjeJRJYOuXH/atomists/curating-a-fusion-vault/understanding-performance-of-a-vault)