> For the complete documentation index, see [llms.txt](https://mevcapital.gitbook.io/vaults-protocol/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://mevcapital.gitbook.io/vaults-protocol/architecture-and-operational-flow.md).

# Architecture & Operational Flow

MEV Capital’s restaking vaults are structured around a capital-efficient, non-custodial model that abstracts restaking complexity while maximizing exposure to network rewards. The system is governed by three foundational principles:

**Maximize Reward Capture** Vaults are optimized to target the most competitive reward paths, including staking emissions, operator rebates, and ecosystem point campaigns. Allocation strategies evaluate emission velocity, points dynamics, and validator-specific payout history.

**Manage Slashing Risk** Operator sets are diversified and selected based on slashing history, infrastructure robustness, and active monitoring capacity. Where appropriate, the vault engine allocates to non-slashable AVSs to mitigate downside exposure.

**Dynamic Rebalancing** Allocations are continuously monitored and periodically rebalanced based on validator performance, governance changes, and emerging risk factors. Auto-deallocation hooks are in place to protect user funds in case of validator failure or abnormal network behavior.

**Vault Execution Flow:**

1. **Collateral Deposit** – Users deposit ERC-20 compatible LSTs (e.g., wstETH, cbETH, rETH) into the smart contract vault.
2. **Operator Allocation** – Deposits are distributed across a curated list of trusted operators validated through MEV Capital’s internal scoring and due diligence framework.
3. **Network Delegation** – Operators reallocate security to restakable networks or AVSs following pre-defined reward-to-risk profiles.
4. **Reward Harvesting** – Yields accrue from native staking emissions, operator rewards, and point-based incentive campaigns.

This architecture maintains full asset ownership on the user side and guarantees on-chain auditability of delegation and yield accrual mechanisms. Integrated monitoring ensures vaults remain responsive to protocol-level changes and validator-level events.

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