> 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/strategy-vault/architecture-and-operational-flow.md).

# Architecture & Operational Flow

Strategy Vaults are built on a modular architecture that emphasizes composability, flexibility, and on-chain transparency. Each vault is structured to follow a defined execution path aligned with a core thesis, while retaining the ability to rotate capital dynamically across DeFi venues.

**Strategy Module Definition**\
Each vault is governed by one or more predefined strategy modules—composable components designed for specific purposes such as leveraged staking loops, multi-protocol liquidity routing, basis spread harvesting, or point-maximization stacking (e.g., Eigenlayer, Pendle, LayerZero). Each module defines actions, allocation conditions, and execution constraints.

**Execution and Monitoring Layer**\
All vault logic is deployed on-chain, orchestrated via smart contracts, and monitored continuously. Live telemetry tracks vault performance, deviation from expected returns, market events, and pre-set risk triggers. Positions are opened, adjusted, or closed based on encoded execution logic.

**Capital Routing and Allocation Engine**\
Capital is routed across eligible venues using a risk-adjusted allocation engine. This engine evaluates factors such as yield potential, gas efficiency, protocol incentives, and strategy correlation. Allocations are updated dynamically in response to market volatility, governance updates, or performance shifts.

**Harvesting and Compounding Mechanics**\
Yields are harvested periodically and routed through optimal conversion paths to either distribute or reinvest, depending on vault design. This can include autocompounding of bribes, protocol emissions, or vault-native yield derivatives.

This design supports composable, non-custodial exposure to evolving DeFi strategies while maintaining transparency, capital efficiency, and automated risk controls.


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://mevcapital.gitbook.io/vaults-protocol/strategy-vault/architecture-and-operational-flow.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.