Glossary
Fair value
The price that would be received to sell an asset in an orderly transaction between market participants at the measurement date.
For a liquid token with a deep market the quoted price is the starting point, but not automatically the answer: the standard requires identifying the principal market, confirming access to it, and applying a consistent measurement time — which is not obvious when markets never close.
For illiquid, locked or thinly traded positions it becomes a modelling exercise, with the discount applied for lack of marketability usually the single most contested assumption.
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