# How It Works

Core Flow

```
1. Deposit → Shares Minted
   ↓
2. Manager: execute(target, calldata)
   ↓
3. Profits Realized → HWM Check
   ↓
4. Withdraw → 1% Fee (if profit) → Shares Burned
```

#### **Deposit Example**

* TVL: $100K, Deposit: $1K → Shares: 1% (1,000 shares).
* TVL → $120K → Your value: $1,200.

#### **Execution Model**

```solidity
function execute(address target, bytes calldata data) external onlyManager {
    require(whitelist[target], "Not whitelisted");
    (bool success, ) = target.call(data);
    require(success, "Execution failed");
}
```

**Example**:

* HWM: $100K → TVL: $90K → **0% fee**
* TVL: $110K → **$1K profit → $10 fee**

#### **Challenge Simulation**

* **Virtual $100K USDC**.
* **Actions**: \[BUY ETH] \[SELL 50%].
* **Prices**: Chainlink real-time.
* **Hourly Log**: On-chain Merkle root.
* **Pass**: ≥$200K → Manager role.
