> For the complete documentation index, see [llms.txt](https://docs.summer.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.summer.fi/summer.fi/basic-concepts.md).

# Basic Concepts

* **Fleet**: A set of contracts that manage user deposits and generate yield through various strategies.
* **Vault**: The user-facing component of a Fleet where users deposit tokens to earn yield.
* **ARK**: A contract that implements specific yield-generating strategies like lending or staking.
* **Buffer ARK**: A specialized ARK that holds liquid assets for quick, low-cost withdrawals.
* **Fleet Commander**: The central coordinator that manages deposits, withdrawals, and asset allocation across ARKs.
* **RAFT**: A contract that harvests and auctions reward tokens, converting them back to the Fleet's deposit token.
* **Tips**: 1% fee on Assets Under Management (AUM) distributed through share dilution.
* **TipJar**: System for distributing protocol fees to designated recipients through configurable streams.
* **TipStreams**: Individual recipient configurations in the TipJar with specific allocation rates and lock periods.
* **Forced Withdrawal**: Mechanism allowing users to withdraw directly from ARKs when Buffer ARK lacks sufficient balance.
* **Rebalancing**: Process of redistributing assets between ARKs to optimize yield and maintain buffer requirements.
* **Keepers**: Authorized entities that can trigger rebalancing and other maintenance operations.
* **Share Price**: Determined by total assets divided by total shares, with tips slightly diluting share value over time.
* **Governance**: System controlling protocol parameters, ARK approvals, and fee distribution.
* **Admiral's Quarters**: User interface contract enabling complex interactions with Fleets through batch operations.
* **Minimum Buffer Balance**: Required minimum amount of assets in Buffer ARK to ensure withdrawal availability.
* **Deposit Cap**: Maximum amount of assets a Fleet or ARK can accept.
* **Active ARKs**: ARKs approved by governance for use in a Fleet.
* **Referral System**: Optional mechanism for tracking user onboarding through referral codes.
* **Rewards**: Additional tokens earned through ARK strategies and converted by RAFT.
* **Dutch Auctions**: Mechanism used by RAFT to sell harvested rewards at optimal prices.
* **Effective Deposit Cap**: Dynamic cap for ARKs based on Fleet TVL and configuration.
* **Voting Power**: Governance rights determined by share ownership and delegation patterns.
* **Decay Function**: System reducing voting power over time to encourage active governance.