> ## Documentation Index > Fetch the complete documentation index at: https://docs.kamui.finance/llms.txt > Use this file to discover all available pages before exploring further. # Product Architecture > The three platform layers — Vault Operations, the Kamui Backend Core, and the web app — and the Lagoon ERC-7540 protocol underneath. ## Vault Architecture The architecture exists to make one promise credible: that every movement of your money is authorised, verifiable, and impossible for any single party to force through unilaterally. The platform is organised into three layers, a Vault Operations layer, the Kamui Backend Core, and a user-facing web app, connected to on-chain infrastructure and issuers on one side and to operational tooling and governance on the other. Kamui Vault system architecture: Vault Operations and the Kamui Backend Core sit between external integrations (Ethereum mainnet, issuer/tokeniser connectivity, Lagoon smart contracts) and operational tooling and governance, with the Kamui Vault web app on top *Figure 14. Kamui Vault system architecture.* ### Vault operations These are the recurring functions the operations team runs every day, using proprietary tools and automated processes under documented guidelines and SOPs. The goal is to keep each vault aligned to its strategy, maintain safety, create transparency, and manage risk and liquidity. | Component | Function | | - | - | | Daily NAV Publication | Computes and publishes each vault's net asset value daily, setting the share price at which deposits and withdrawals settle. | | Asset Due Diligence | Runs AI-powered due diligence by Kamui's in-house experts on every asset, using an internal risk framework, combined with independent external ratings, before the asset can be allocated. | | Daily Rebalancing | Adjusts each vault toward its target weights while maintaining a liquidity buffer that backs withdrawals. | | Continuous Risk Monitoring | Tracks issuer, credit, market, and on-chain risks on live positions and flags breaches for action. | | Asset & Vault Data Maintenance | Maintains the asset registry continuously: records, metadata, issuer and tokeniser information, and data sources. | | Periodic Performance Review | Reviews realised performance, yield, and tracking against strategy on a scheduled cadence. | ### Kamui backend core The backbone of platform operations. It ensures that on-chain actions are safe and verifiable and keeps the system's data, security, and compliance state current. | Component | Function | | - | - | | Internal Database | The platform's system of record: NAV proposals and history, asset and vault registries, approval queues, and audit logs. | | Pricing Engine | Ingests asset NAVs from tokenisers and on-chain oracles, screens out stale records, cryptographically signs each price, and submits verified NAV proposals. | | Transaction Simulation | Pre-flight simulates every state-changing transaction, so failures are caught before any signature is collected. | | Wallet & Key Management | Manages the platform's MPC wallets, signer quorums, and the policies that authorise and execute on-chain actions. | | Indexing Service | Indexes on-chain events (deposits, withdrawals, settlements) to keep balances, composition, and activity views current. | | System Monitoring | Watches platform health, scheduled jobs, and integrations, and raises operational alerts. | | AML & Compliance Policies | Screens addresses against sanctions and AML lists and synchronises the on-chain allow and block lists. | | On-chain Monitoring | Watches the vault contracts and positions on-chain for unexpected state or activity. | | Roles & Permissions | Enforces role-based access control, signer-group quorums, and the approval workflow for every privileged action. | ### External integrations The on-chain and issuer systems the platform reads from and writes to. | Integration | Role | | - | - | | Ethereum Mainnet (Subgraph / RPC / Oracle) | Reads chain state and historical data and pushes signed transactions to the network. | | Issuer / Tokeniser Connectivity | Mints and redeems tokenised real-world assets directly with issuers and tokenisers. | | Lagoon Smart Contracts | Interacts with the ERC-7540 vault, pending silo, and curator functions that hold assets and settle requests. | ### Operational tooling and governance Three decision-support tools sit alongside Vault Operations, and three oversight bodies govern the Backend Core. | Module | Role | | - | - | | Asset Evaluation Engine | AI-powered asset screening and scoring that supports asset-level due diligence, including in-depth risk and performance research. | | Vault Simulator | Models vault portfolio combinations for vault-level performance and liquidity scenarios before changes are made. | | Rebalancing Tool | Proposes daily rebalancing actions based on daily inflows and outflows, vault parameters, and rebalancing policies. | | Risk Committee | Owns asset selection, performance and liquidity review, risk-framework definition, and vault-parameter review. | | Security Committee | Owns roles and permission policies, wallet policies, technical and operational controls, and execution-related guardrails. | | In-house Legal Counsel | Oversees compliance, monitors allow and block-list changes, and advises on regulatory matters. | ### Underlying protocol: Lagoon ERC-7540 Each Kamui vault is an ERC-7540 asynchronous vault deployed on Lagoon's infrastructure. Deposits are synchronous: you receive your receipt tokens instantly. Withdrawals are asynchronous: the standard separates your withdrawal request from its settlement. Shares being withdrawn are first moved into a pending silo contract, then settled together in a batch at a single, verified valuation point. Each vault issues a standard ERC-20 receipt token (USDst, USDbd, USDbt). Value accrues through price appreciation, not rebasing: the token price equals total vault NAV divided by total token supply, so as the portfolio earns, the token's price rises and no manual claim or harvest is required. Tokens are minted on deposit, burned on withdrawal, and are freely transferable. This documentation is built and hosted on [Mintlify](https://mintlify.com), a developer documentation platform.