# Overview

There are Three Roles in an Investment Pool:

* The **Investors** who have tokens to invest.
* The **Strategists** who create the investment strategy.
* The **Administrators** who oversee the Strategists and certify their Performance. Investment Pool Administration may be fully trustless with oracles and keeper jobs or partly delegated to third party entities.

### **In a nutshell:**

1. **Investors** can buy or sell their **Asset** to/from the **Investment Pool** in exchange of **Investment Pool** **tokens.**  The exchange rate depends on the Pool **Net Asset Value** and deposits and withdrawals are handled together during regular **Batch-Settlements**.
2. The **Strategist** endeavours to increase the **Pool Net Asset Value** according to a chosen investment strategy.
3. **Investment Pool Token**s can always be freely bought and sold on the **secondary market.**

### Main Concepts

* **Asset** or **Base Currency**: the token you deposit in the Pool and in which Pool value is labelled.
* **Investment Pool Token**: the token received once a deposit has been confirmed. **Investment Pool tokens** are always exchanged against **the Base Currency** at **Net Asset Value** on the **Primary Market**.
* **Pool TVL**: The total Value Locked within the Pool: the value of all the Pool assets.
* **Net Asset Value (NAV)**: The Intrinsic Value of Each Pool Token; NAV = Pool TVL/Pool Total Supply.
* **Primary Market**: The Contracts in which you can deposit Assets to obtain freshly minted Investment Pool Tokens at NAV or withdraw your invested Assets by burning the Investment Pool Tokens at NAV. The pending deposits and withdrawals are settled in batches during **Batch-Settlement** events. Batch-Settlement may not be instantaneous because liquidity may have to be bridged back to the Pool in case of large withdrawals. 
* **Batch-Settlement**: The transaction which settles pending deposits and withdrawal at current **NAV.**
* **Secondary Market**: PoolTokens may always be freely bought and sold on the market.  Arbitrage should ensure that the secondary market price stays in a reasonable range  around NAV. E.g.: if the token is cheaper than NAV on the secondary market then by buying it on the secondary market and exchanging it at NAV on the primary market you can pocket riskless profits.
* **Benchmark**: A basic strategy compared to which the Pool Performance is evaluated. A pool actively buying and selling bitcoins to time the market may for instance have as benchmark the simple bitcoin 'hodl' strategy.

<figure><img src="/files/qNkjSK0AvJSadgfQZYZD" alt=""><figcaption><p>Investment Pool summary architecture</p></figcaption></figure>


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