> 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/how-sivax-works.md).

# How SIVAX Works

SIVAX is designed to make structured income easier to use through a continuously managed product experience. From the user’s perspective, the flow is simple: 

1. [Connect a wallet](/user-guide/how-to-connect-wallet-with-xaman.md)
2. [Enter the fund product](/user-guide/how-to-withdraw.md)
3. [Follow portfolio status](/user-guide/how-to-withdraw.md#withdrawal-completed)
4. [Exit when desired](/user-guide/how-to-withdraw.md)

Behind that experience, capital is managed within a live strategy that allocates, rebalances, and adjusts exposures over time.

{% stepper %}
{% step %}

#### Enter the Fund Product

The SIVAX experience begins when users enter a single product designed to remain active over time. The strategy operates continuously in the background, so users remain in the product without needing to re-enter or rebuild their position.
{% endstep %}

{% step %}

#### Capital Enters the Strategy

Once capital enters the product, it becomes part of a continuously managed portfolio. The strategy determines how capital is deployed across structured income opportunities and adjusts positioning as market conditions evolve.
{% endstep %}

{% step %}

#### Allocation Across Income Strategies

SIVAX allocates capital across multiple sources of income within a single product, including FCN-style structures, covered call strategies, and bond-like income opportunities depending on market conditions.
{% endstep %}

{% step %}

#### Allocation Adapts Over Time

The portfolio adapts to changing market conditions as the strategy adjusts how capital is allocated across different exposures. These include FCN-style structures, covered calls, reserve capital, and hedging activity.
{% endstep %}

{% step %}

#### Risk Management

As the strategy allocates across structured positions, it also manages the associated risks through rebalancing, hedging, and exposure adjustments. Yield generation and risk management operate together to keep the portfolio aligned with its objective.
{% endstep %}

{% step %}

#### Portfolio Tracking

The product remains active, and users follow portfolio status as the strategy operates in the background.
{% endstep %}

{% step %}

#### Exit at the Product Level

Users exit the fund product directly when they choose to leave. Entry and exit are handled at the product level, while portfolio construction, reallocation, and exposure management continue within the strategy.
{% endstep %}
{% endstepper %}

{% hint style="info" %}
Custom-built structures may be available for more advanced use cases, but are not part of the core experience.
{% endhint %}

### Model Overview

This model combines a simple and continuous user experience with a strategy that applies structured finance logic, active allocation, and dynamic risk management. The interface stays simple, while the strategy operates with full flexibility.


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