> 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/asset-flow-example.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:

1. **Deposit** – User deposits assets into an autopool. After this action, the autopool has idle assets and the user gets the respective receipt token in return;
2. **Rebalance** – After a certain threshold of assets are deposited into the autopool, the Strategy backing it starts to accept proposals from the Solver. Once a proposal satisfies the constraints imposed by the Strategy, the assets in the autopool are sent to the Solver which will then return LP tokens to the autopool;
3. **Auto-compounding** – On a periodic basis, rewards from destinations are claimed and collected via a keeper process. These tokens are then converted into the autopool base asset;
4. **Debt Reporting** – Each autopool goes through a debt reporting where the system re-values the LP tokens held by that autopool. During that process, any available auto-compounded rewards are claimed and come into the autopool as idle funds;
5. **Restart** – With sufficient idle assets in the autopool, another rebalance can occur. 

In other words, users deposit assets into autopools, the stats contracts provide on-chain information about the market, and the solver proposes rebalances to the strategy. To be accepted, the proposed rebalance must meet the strategy's constraints.\
\
The above outline focused on idle → LP rebalances but the rebalance step can occur for LP → LP rebalances as well. So long as the proposal results in a higher potential return (and satisfies other constraints) it can be executed.


---

# 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, and the optional `goal` query parameter:

```
GET https://docs.auto.finance/auto-pools-protocol/protocol-mechanics/asset-flow-example.md?ask=<question>&goal=<endgoal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.

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.