> ## Documentation Index
> Fetch the complete documentation index at: https://docs.railnet.org/llms.txt
> Use this file to discover all available pages before exploring further.

# Allocation Strategies

> Compose multiple yield sources into a managed allocation with automated routing and on-chain guardrails

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An Allocation Strategy is the composition layer of Railnet. Once you have multiple yield sources — [Advanced Strategies](/strategies/advanced), standard protocol adapters, or both — you compose them into a single managed allocation with automated deposit and redeem routing, sector-based accounting, and on-chain guardrails.

<AllocationOverview />

## When to use an Allocation Strategy

You need an Allocation Strategy when you want to:

* **Compose multiple yield sources** into a single product — combine lending protocols, staking, RWA, and Advanced Strategies under one allocation
* **Automate capital routing** — configurable deposit and redeem priority queues distribute capital across sources without manual intervention
* **Build fund-of-funds** — include Advanced Strategies as sub-vehicles alongside standard protocol adapters, creating a portfolio that mixes custom execution with established DeFi yield
* **Distribute through Conduits** — a single Allocation Strategy can back multiple [Conduits](/conduits), each with their own fees, compliance rules, and branded shares

## How it works

When you deploy an Allocation Strategy, you get five interconnected contracts:

| Contract                     | Purpose                                                              |
| ---------------------------- | -------------------------------------------------------------------- |
| **MultiVehicle**             | Main strategy contract. Users deposit and receive ERC-20 shares.     |
| **Sector Accounting Engine** | Tracks all asset allocations across yield sources and idle sectors.  |
| **Queue Strategy Engine**    | Defines deposit and redeem priority queues for automated allocation. |
| **Sub Query Engine**         | Executes deposit and redeem queries on yield sources.                |
| **Query Redeem Queue**       | Handles asynchronous redemption processing.                          |

Assets flow through distinct sectors — idle capital in the deposit sector, pending and active allocations per yield source, and assets awaiting user claims in the redeem sector. Every movement follows double-entry bookkeeping, giving you real-time NAV without off-chain reconciliation.

## Allocation Strategy vs Advanced Strategy

|                     | Allocation Strategy                                                  | Advanced Strategy                                             |
| ------------------- | -------------------------------------------------------------------- | ------------------------------------------------------------- |
| **Purpose**         | Compose multiple yield sources into one managed allocation           | Execute custom logic on any protocol with full flexibility    |
| **Contract**        | MultiVehicle                                                         | Specialized Vehicle (Safe + Zodiac Roles)                     |
| **Best for**        | Diversified portfolios, automated routing, fund-of-funds             | Standalone strategies, bespoke DeFi execution, RWA operations |
| **Guardrails**      | Role-based access control (EAC)                                      | On-chain policy engine (Zodiac Roles Modifier v2)             |
| **Typical journey** | Built after you have multiple strategies or yield sources to compose | Where most asset managers start                               |

The two are composable: an Advanced Strategy can serve as a sub-vehicle inside an Allocation Strategy, and both can be distributed to users via [Conduits](/conduits).

## Guides

<CardGroup cols={2}>
  <Card title="Create an Allocation Strategy" icon="plus" href="/strategies/allocation/create">
    Deploy the Allocation Strategy ecosystem — EAC, Fee Manager, and MultiVehicle — in a single transaction.
  </Card>

  <Card title="Guardrails" icon="shield" href="/strategies/allocation/guardrails">
    Understand the trust boundary between platforms and asset managers.
  </Card>

  <Card title="Operate an Allocation Strategy" icon="sliders" href="/strategies/allocation/operate">
    Manage allocations, rebalance across yield sources, and handle day-to-day operations.
  </Card>

  <Card title="Risk management" icon="shield-check" href="/strategies/risk-management">
    Evaluate yield sources, manage concentration risk, and handle emergencies.
  </Card>
</CardGroup>