# Allocation Strategies \[Compose multiple yield sources into a managed allocation with automated routing and on-chain guardrails]

:::info
In Railnet smart contracts, an Allocation Strategy is implemented as a **MultiVehicle**.
:::

An Allocation Strategy holds several yield sources behind a single ERC-20 share token. Use one when deposits exceed what a single market absorbs, when you want protocol diversification in one token, or when you want an asset manager to make allocation calls inside guardrails you set. One strategy can back several [Conduits](/conduits), each with its own fees, compliance rules and shares.

<AllocationOverview />

## The contracts

One factory call deploys six contracts. The MultiVehicle exposes only `manager()`; every engine hangs off it.

| Contract | Purpose |
|---|---|
| **MultiVehicle** | Share token and STEAM entry points for depositors |
| **VehicleManager** | Source authorization, per-source config and caps, redeem queue operations |
| **SectorAccountingEngine** | Double-entry balances per sector, `move` and `dispatch` |
| **QueueStrategyEngine** | Deposit and redeem priority queues |
| **SubQueryEngine** | Creates and advances sub-queries on each yield source |
| **QueryRedeemQueue** | FIFO matching of redemption demand against liquidity |

Balances live in sectors: `AVAILABLE` (idle), `RESERVED` (parked aside), one staging sector per source, `ALLOCATION` (settled source shares). See [Sector accounting](/developers/contracts/accounting).

## Next steps

<Cards>
  <Card title="Create an Allocation Strategy" description="Deploy the access control, fee manager and MultiVehicle, then authorize yield sources." icon="plus" to="/strategies/allocation/create" />

  <Card title="Guardrails and mandates" description="What the owner keeps, what the asset manager gets." icon="shield" to="/strategies/allocation/guardrails" />

  <Card title="Operate an Allocation Strategy" description="Configure queues, move and dispatch capital, rebalance." icon="sliders" to="/strategies/allocation/operate" />
</Cards>