# 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>


---

# Agent Instructions: 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://docs.fathom.fi/vaults/architecture.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.