> For the complete documentation index, see [llms.txt](https://docs.alloc8.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.alloc8.xyz/architechure/readme.md).

# Architecture Overview

Alloc8’s architecture connects modular smart accounts, Agents, and policy enforcement to manage and rebalance concentrated liquidity positions.

#### High-level flow

1. **Account Setup**: EOA deploys and configures a Smart Account and installs modules.
2. **Strategy Input**: The system requests optimal ranges from the Agent.
3. **Position Management**: deposits mint LP positions via the Position Manager.
4. **Rebalancing**: agent proposes operations; GSPM validates policy constraints.
5. **Execution**: operations execute through ERC-4337 (bundler → EntryPoint).
6. **Liquidity Update**: Position Manager burns/mints positions to update ranges.

During rebalance/autocompound actions, realized fees/yield may be collected, and the protocol performance fee is applied to the generated yield amount.

Result: non-custodial, policy-based execution for continuous LP optimization.

<figure><img src="/files/cNuTNmEj6VE608oY3wRN" alt=""><figcaption></figcaption></figure>