Curation

Roles and operations

All Api3 vaults share the same role structure and operational setup stewarded by the API3 Foundation.

Roles

Role	Held by
Owner	Api3 Foundation Multisig
Curator	Api3 Foundation Multisig
Allocator	Api3 Foundation Multisig
Guardian	Api3 monitoring team

The Api3 Foundation Multisig holds the owner, curator, and allocator roles, consolidating governance and operational control under a single entity whose express mission is the development, operation, and maintenance of Api3 services and operations. Role names correspond to terminology in underlying smart contracts and protocols, and do not carry any legal nor other significance or meaning.

The guardian role is operated by the Api3 monitoring team, who can revoke pending actions in case of misconfiguration. The monitoring team also maintains an emergency fund for manual liquidations in the event that automated liquidation bots fail. Api3 provides no guarantee of the effectiveness or sufficiency of such bots or emergency fund's operation.

Vault architecture

All Api3 vaults follow a two-layer architecture:

Depositor → V2 Vault → V1 Vault → Morpho Markets

1. V2 Vault — The user-facing vault where depositors supply USDC and receive vault shares. Configured with the Api3 role structure and governance controls described above.

2. V1 Vault — The intermediary vault that executes the actual market allocations. The V1 vault holds two allocators:

   • The Morpho Public Allocator, which enables permissionless reallocation to improve liquidity across markets.
   • An Api3 automated bot that rebalances allocations to maintain a competitive APY across all enabled markets.

The owner of the V1 vault parameter adjustment abilities is also the Api3 Foundation Multisig. The 5% performance fee is charged at this layer (see Fees).

Allocation and rebalancing

Capital allocation across markets is automated. The Api3 allocation bot monitors market conditions and rebalances the vault's positions to maintain target utilization and competitive APY. The Morpho Public Allocator complements this by enabling permissionless reallocation when liquidity is needed.

A portion of vault deposits is kept idle to assist with depositor withdrawals and mitigate delays, but does not guarantee delay-free withdrawal.

Monitoring

Api3 leverages its existing data feed infrastructure to monitor token liquidity and market conditions — the same infrastructure that powers its oracle operations.

• Liquidity bots — Ensure smooth and automatic management of vault positions and market allocations.
• Risk engine alerts — An alerts-based system that flags suspicious activity, unusual market conditions, or parameter deviations.
• 24/7 monitoring team — Api3's monitoring team handles escalations from the risk engine around the clock.

Liquidations

Healthy liquidation markets are essential for vault safety. When borrowers become undercollateralized, third-party liquidation bots may repay their debt and claim collateral at a discount, aiming to keep the vault solvent.

In the event that automated liquidation bots fail to act, the Api3 monitoring team can execute manual liquidations using a dedicated emergency fund. The amount and usage of such fund is at Api3's sole discretion.