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

# Architecture

At the core of Fathom Vaults' architecture are the smart contracts that handle vault operations, strategy implementation, and interactions with the FXD stablecoin. Here is a simplified view of the system:

1. **User Interface (UI):** Web3 compatible interfaces that allow users to interact with vaults, deposit and withdraw funds, and participate in governance.
2. **Smart Contracts:**
   * **Vault Contracts:** Manage the deposits, withdrawals, and allocation of funds to various strategies.
   * **Strategy Contracts:** Execute specific investment protocols, manage performance, and handle rewards distribution.
   * **Governance Contracts:** Facilitate voting and administrative functions driven by community governance.
3. **Off-Chain Data Storage:** Utilizes Graph Node and Subgraphs for indexing and querying blockchain data efficiently, enhancing the responsiveness and scalability of the platform.
4. **Off-Chain Services:** The Reports Processor automates the report processing for vault strategies. Monitoring & Risk Management AI Agents and Monitoring Systems bring more reliability and capital efficiency to the vaults and strategies.
5. **API Gateway:** Offers a seamless connection between the frontend and smart contracts, facilitating data flow and transaction execution across the platform.
6. **FXD Stablecoin:** FXD is the backbone of the Fathom Vaults ecosystem, designed to mitigate price volatility and provide a reliable medium of exchange. Vaults allow FXD holders to invest in various on-chain and off-chain products leveraging their portfolio.
7. **AI Agents:** They work for users and vault managers. On the user side, they allow users to structure the vaults' portfolio. For vault managers, they offer help structuring the strategies' allocations.

<figure><img src="/files/RjnYJm2ofKyV9rXuGt69" alt=""><figcaption><p>Architecture</p></figcaption></figure>