# Strategies \[Compose several yield sources, or run custom execution on-chain]

This layer is optional. To distribute a single yield source, pick one from the [catalog](/yield-sources) and wrap it in a [Conduit](/conduits) — you do not need anything on this page.

Reach for a strategy when one source is not enough: capital has to spread across several protocols, be rebalanced over time, or be executed by an asset manager inside guardrails the contracts enforce.

## Allocation Strategy

An Allocation Strategy holds several yield sources behind one share token. Deposit and redeem queues route capital across the authorized sources, sector accounting produces NAV on-chain, and the owner decides which sources the strategy may use. Operations are intent-based: you move capital between sectors and dispatch it to a source instead of crafting a transaction per protocol. In Railnet smart contracts it is a **MultiVehicle**.

## Advanced Strategy

An Advanced Strategy runs your own execution logic against any contract — lending, swaps, bridges, perpetual futures, RWA operations. Capital sits in a Safe that no infrastructure provider can recover keys for, a Zodiac Roles Modifier whitelists the contracts, functions and parameter values the asset manager may use, and an ERC-7540 vault handles subscriptions, redemptions and NAV in a standard format. In Railnet smart contracts it is a **Specialized Vehicle**.

The two compose. An Advanced Strategy can sit inside an Allocation Strategy as one of its yield sources, and either can be distributed to end users through a [Conduit](/conduits).

## Next steps

<Cards>
  <Card title="Allocation Strategies" description="Compose yield sources into one managed allocation with automated routing." icon="grid-3x3" to="/strategies/allocation" />

  <Card title="Advanced Strategies" description="Non-custodial execution with an on-chain policy engine and standardized NAV." icon="layers" to="/strategies/advanced" />

  <Card title="Risk management" description="Caps, emergency controls, and the audit trail." icon="shield-check" to="/strategies/risk-management" />
</Cards>