diff --git a/docs/simulation.md b/docs/simulation.md
index c4394f8..faed6e9 100644
--- a/docs/simulation.md
+++ b/docs/simulation.md
@@ -116,6 +116,40 @@ The `store≠document` two axes materialize here directly: the registry moves al
 axis B (more documents = more isolation), never axis A (it always writes into the
 one private store via `docCreate(..., undefined)`).
 
+### A virtual wallet's structure — the three emulated stores
+
+A **virtual wallet** = one account in the shim, keyed by its **virtual-wallet id**
+(the technical identifier the consumer sets when the physical wallet is opened; it
+identifies *which* virtual wallet, and is NOT the consumer's application username).
+Its structure mirrors the target "1 user = 1 wallet with 3 native stores":
+
+```
+Virtual wallet (id)
+├── public store    = docPublic  index → [ event doc NURI, PdR doc NURI, … ]
+├── protected store = docProtected index → [ profile doc NURI, participation doc NURI, … ]
+└── private store   = docPrivate index → [ settings doc NURI, … ]
+```
+
+So **yes, the 3 native stores (public/protected/private) are present** — but
+**emulated**: each "store" is an **index document**
+(`AccountRecord.{docPublic,docProtected,docPrivate}`) that LISTS the NURIs of the
+per-entity documents in that scope. It is not a physical native store.
+
+Everything is physical in ONE place: the 3 index documents, every per-entity
+document, and the shim anchor itself all live in the shared **physical** wallet's
+private store (`docCreate(..., undefined)`). The 3-store structure is the per-account
+**logical** layer the lib maintains on top.
+
+```
+Physical wallet (shared, ONE) → private_store (physical) holds EVERYTHING:
+   • the shim anchor:  virtual-wallet-id → { docPublic, docProtected, docPrivate }
+   • every account's 3 scope-index docs + all per-entity docs + inbox + discovery index
+```
+
+At migration each virtual wallet's 3 index documents become the user's 3 **real**
+native stores, the entity documents move into them physically, and the
+virtual/physical distinction dissolves (see [`migration-guide.md`](./migration-guide.md)).
+
 ### SDK-shaped scope resolvers — the consumer holds NO store-id
 
 The consumer must never construct a `did:ng:${store_id}` NURI itself: physical