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

# Allocation Engine

> How Autoseek continuously evaluates opportunities and manages portfolio allocations.

# Allocation Engine

The Allocation Engine, known as **Autoseek**, is responsible for managing each Agent's portfolio.

It continuously evaluates supported DeFi opportunities, determines how capital should be allocated, and requests portfolio changes when better opportunities become available.

Autoseek determines **what should happen**. It does not directly execute blockchain transactions.

***

## Continuous Evaluation

Rather than making one-time investment decisions, Autoseek continuously reassesses every portfolio.

It evaluates factors including:

* expected yield
* protocol risk
* liquidity
* diversification
* transaction costs
* user preferences
* current market conditions

This allows portfolios to adapt as opportunities evolve.

***

## Investment Profile

Every Agent operates using a selected investment profile.

### Conservative

Prioritises established protocols, deeper liquidity, and proven lending markets.

### Explorative

Expands the range of eligible opportunities while continuing to respect protocol-defined risk constraints.

Users can change their investment profile at any time.

***

## Portfolio Optimisation

Autoseek seeks to maximise long-term risk-adjusted returns rather than simply chasing the highest available yield.

Portfolio decisions balance multiple competing objectives, including:

* yield
* diversification
* liquidity
* protocol quality
* operational efficiency

This produces more stable portfolio behaviour over time.

***

## Continuous Rebalancing

As market conditions change, Autoseek may recommend reallocating capital.

Examples include:

* a higher-quality opportunity becoming available
* changing protocol conditions
* reduced liquidity
* deteriorating risk characteristics
* user preference updates

Rebalancing only occurs when it satisfies the protocol's decision criteria.

***

## Decision Pipeline

Every proposed allocation passes through a structured evaluation process before execution.

```mermaid theme={null}
flowchart LR

Candidates["Candidate Vaults"]

Eligibility["Eligibility"]

Assessment["Opportunity Assessment"]

Constraints["Allocation Constraints"]

Decision["Execution Request"]

Candidates --> Eligibility
Eligibility --> Scoring
Scoring --> Constraints
Constraints --> Decision
```

Each stage progressively filters and evaluates opportunities before a final allocation decision is produced.

Learn more in **Decision Pipeline**.

***

## Separation of Responsibilities

The Allocation Engine is responsible for:

* evaluating opportunities
* selecting allocations
* portfolio optimisation
* rebalancing decisions

It is **not** responsible for:

* interpreting user conversations
* executing blockchain transactions
* validating protocol interactions

Those responsibilities belong to Agent Intelligence and the Execution Framework.

Learn more in **Execution Framework**.