> ## Documentation Index
> Fetch the complete documentation index at: https://docs.molq.site/llms.txt
> Use this file to discover all available pages before exploring further.

# How MolQ works

> Understand the MolQ capital flow, strategy sleeves, and profit accounting.

## Capital flow

```mermaid theme={null}
flowchart LR
  U[USDe depositor] --> V[MolQ ERC-4626 vault]
  V -->|85% target| A[Aave V3 USDe]
  V -->|15% target| L[Liquid sleeve]
  M[Market data and model] --> P[Deterministic policy]
  P --> K[Keeper and guarded executor]
  K --> V
  K --> B[Bybit hedge account]
  K --> D[Decision logger]
  D --> I[Ponder indexer]
```

### Shield sleeve

The shield sleeve holds Aave V3 aUSDe. Deposits automatically supply the target
portion to Aave, and `totalAssets()` counts both idle USDe and aUSDe.

### Liquid and hedge sleeve

The vault keeps a liquid target for withdrawals and strategy operations. A
separately funded Bybit account can hold a policy-capped ETHUSDT short. Exchange
collateral is not transferred from the vault by the smart contract.

### Profit hardening

External strategy profit only becomes vault profit when the keeper returns USDe
and calls `hardenProfit`. The contract transfers the configured performance fee
to treasury, keeps the net profit for shareholders, and rebalances the vault.

## Business model

MolQ charges:

* No deposit fee.
* No withdrawal fee.
* No fee on unrealized PnL.
* A 10% fee on realized external profit hardened into the vault.

The contract caps the performance fee at 20%.

<Info>
  Aave interest increases the vault's aUSDe balance and therefore the value of `mqUSDe`. The
  separate performance fee path applies to external alpha profit.
</Info>