> For the complete documentation index, see [llms.txt](https://docs.sivax.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.sivax.io/overview/core-concepts.md).

# Core Concepts

SIVAX is built around a continuously managed fund product. The platform is designed to make structured income easier to access through a simpler product experience, while strategy, allocation, and risk management operate within the product.

<details>

<summary>Product</summary>

#### Fund Product

<mark style="color:$info;">Single entry point through a continuously managed fund.</mark>

SIVAX provides access through a single fund-type product. Once a user enters, their capital becomes part of a live strategy.

#### Entry & Exit

<mark style="color:$info;">Users enter and exit at the product level.</mark>

Users enter the fund product directly and join the strategy at the product level. When they choose to leave, they exit the product directly, while portfolio construction and management continue within the strategy.

</details>

<details>

<summary>Strategy</summary>

#### Strategy Allocation

<mark style="color:$info;">Capital is allocated by the strategy.</mark>

Once capital enters the product, the strategy determines how it is deployed across structured income opportunities, reserve capital, and hedged exposures. This defines how the portfolio is positioned over time.

#### Yield Generation

<mark style="color:$info;">Income comes from multiple managed sources.</mark>

Yield is generated through a mix of income strategies, which may include FCN-style structures, covered call strategies, and bond-like allocations depending on market conditions.

#### Reallocation

<mark style="color:$info;">Capital positioning adjusts over time.</mark>

The strategy adjusts how capital is distributed as market conditions evolve. Allocation may shift between structured income positions, reserve capital, and hedging activity to maintain alignment with the portfolio objective.

#### Dynamic Hedging

<mark style="color:$info;">Risk exposure is actively adjusted.</mark>

The strategy updates hedge positions as market conditions and portfolio exposures change. This helps manage evolving risk across structured positions such as FCNs and covered calls.

</details>

<details>

<summary>Experience</summary>

#### Always-On Participation

<mark style="color:$info;">The product stays active as the strategy continuously operates.</mark>

SIVAX operates as an always-on product where the strategy continuously allocates, rebalances, and adjusts exposures. Users remain in the product without needing to re-enter or rebuild positions.

#### Portfolio State

<mark style="color:$info;">Users follow the product, not individual positions.</mark>

The experience is centered on the overall portfolio state, with users tracking the product while the strategy manages individual product cycles.

</details>

<details>

<summary>System</summary>

#### Managed Structured Income

<mark style="color:$info;">Access structured strategies without managing complexity.</mark>

Users gain exposure to structured finance strategies without building or managing individual products. Strategy design, allocation logic, and risk management remain inside the product engine.

#### XRPL Foundation

<mark style="color:$info;">Infrastructure supporting continuous strategy execution.</mark>

SIVAX relies on XRPL for efficient settlement, transparent asset movement, and infrastructure that supports ongoing portfolio activity. This enables the product to operate as an always-on product in an on-chain environment.

</details>

<details>

<summary>Optional</summary>

#### Custom Structures

<mark style="color:$info;">Separate capability for advanced use cases.</mark>

Custom-built structures may be supported for specific use cases requiring more control over payoff design or product terms. This remains separate from the core fund product experience.

</details>


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