> 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/products/how-yield-works.md). # How Yield Works The SIVAX Fund Product generates yield through a managed strategy engine combining multiple income approaches across structured products, options-based positioning, reserve capital allocation, and risk-managed portfolio operations. The product allocates across these strategies to adapt to changing market conditions. Volatility, liquidity, skew, directional exposure, and option premium influence which income sources are more attractive over time. ### Yield Sources **FCN-Style Structures** FCN-style structures are a core source of yield within the product. Used under defined market conditions, they act as an internal yield source within the strategy, with income integrated directly into the portfolio without requiring users to evaluate or manage each structure individually.. **Call Income** The portfolio may also generate income through covered call strategies. When conditions are suitable, the strategy uses call overwriting to collect option premium, adding a complementary source of yield. **Reserve** The strategy allocates reserve capital into bond-like income opportunities when appropriate, allowing capital to remain productive alongside structured and options-based strategies. ### Strategy Mechanics Yield is also shaped by how the strategy manages exposure. The strategy combines hedging, option premium, funding spread, and execution to shape portfolio outcomes and manage payoff dynamics. This includes managing delta, volatility exposure, and other risk factors alongside core positions. ### For Users For users, yield in SIVAX comes from a managed portfolio process. The product combines multiple structured income sources, adjusts allocation over time, and manages risk within the strategy, so users can remain in the product without having to manage each component themselves. This allows users to remain in the product while the strategy handles the underlying complexity, supporting a more consistent and adaptable income profile. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.sivax.io/products/how-yield-works.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.