> For the complete documentation index, see [llms.txt](https://docs.auto.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.auto.finance/auto-pools-protocol/protocol-mechanics.md).

# Protocol Mechanics

## Design Goals

The purpose of the Autopool Protocol is to continuously rebalance assets into destinations with the best risk-return profiles, aiming to outperform any individual destination included in the autopool over the long term. Earnings are auto-compounded back into the autopool and subsequently rebalanced.\
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To achieve this, the autopool's rebalance logic does not merely chase the highest advertised yield but instead processes a comprehensive set of data, applies sophisticated logic, and adheres to safety constraints. \
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This section will provide an accessible overview of the system's general architecture and essential features.

## Components & Logic

This section provides a simplified overview of the components, their functions within the Autopool Protocol, and a summary of the rebalance logic to help users achieve a basic understanding of the autopools.

[Read more](/auto-pools-protocol/protocol-mechanics/components-and-logic.md)

## Asset Flow Example

To understand the general architecture and functioning of the system, it helps to consider a simplified flow of assets within the system

[Read more](/auto-pools-protocol/protocol-mechanics/asset-flow-example.md)


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