> ## Documentation Index > Fetch the complete documentation index at: https://agon-labs.mintlify.site/llms.txt > Use this file to discover all available pages before exploring further. # Vaults & Custody ## Your assets stay yours. Agōn is **non-custodial**. We do not take possession of your funds, hold your private keys, or maintain a pooled customer account. Your assets are held in your own wallet, powered by Privy, while Agōn's smart contracts manage the Index infrastructure onchain. This creates a clear separation between **your wallet** and **the Index vaults**. *** ## Your wallet When you join Agōn, Privy creates an embedded, self-custodial wallet for you. Your wallet is where your available assets are held before and after you trade. Neither Agōn nor Privy has access to your complete private key. Privy's infrastructure uses secure key management and key splitting so that the appropriate user remains in control of the wallet. Users can also export their wallet key, providing an exit from the embedded-wallet environment. **Your wallet holds your assets.** Agōn provides the interface and transaction logic that lets you use those assets. *** # Index vaults When you purchase an Index, the Index's underlying assets are held through its designated onchain vault infrastructure. The vault is not an Agōn bank account. It is a smart-contract-controlled pool that holds the assets backing the Index and executes the rules defined by the Index architecture. The vault can: * Hold the Index's underlying positions * Receive and deploy capital * Execute approved transactions * Track assets and balances onchain * Process purchases and redemptions * Return proceeds when underlying positions resolve The important distinction is that **Agōn manages the protocol logic; it does not take custody of the assets.** *** ## How the pieces fit together Think of the architecture as three separate layers: ### 01 — Your Wallet **Owned by you.** Your Privy wallet holds your available assets and is used to authorize transactions. ↓ ### 02 — Agōn Protocol **Operated by Agōn.** Agōn determines Index composition, pricing, deployment logic, rebalancing, and the transactions required to interact with the underlying markets. ↓ ### 03 — Index Vault **Controlled by smart contracts.** The vault holds and manages the assets underlying the Index according to its programmed rules. ↓ ### 04 — Prediction Markets **The underlying exposure.** The vault's assets ultimately represent positions in the prediction markets that make up the Index. *** # What Agōn can and cannot do Because Agōn is non-custodial, there is an important distinction between **managing an Index** and **owning a user's assets**. ### Agōn can **Manage Indexes** Define the markets and allocation framework that make up an Index. **Execute protocol transactions** Interact with the underlying markets and vault contracts according to the Index's rules. **Price positions** Calculate the current value of an Index from its underlying assets and market prices. **Facilitate trading** Allow users to purchase, sell, and manage Index positions through the Agōn interface. ### Agōn cannot **Take your funds** Agōn does not receive your assets into a company-controlled customer account. **Hold your private key** Your wallet credentials remain under the user's custody model provided by Privy. **Move assets arbitrarily** Onchain transactions are subject to the wallet's authorization and the permissions enforced by the relevant smart contracts and policies. **Freeze your wallet** Agōn does not have unilateral control over your personal wallet simply because you use the platform. Privy's wallet architecture supports granular authorization and policy controls while preserving non-custodial wallet models. *** # Why use vaults? The vault architecture allows Agōn to separate **ownership** from **portfolio management**. You don't need to individually purchase and manage dozens of prediction-market positions. Instead: **You own your wallet** ↓ **Your wallet purchases an Index** ↓ **The Index vault holds the underlying positions** ↓ **The vault manages those positions according to the Index rules** ↓ **Your Index position reflects the value of those underlying assets** This is what allows Agōn to turn many individual prediction-market positions into one simple, tradable Index. *** # Onchain and verifiable The vault architecture also makes the underlying assets observable onchain. Rather than relying solely on an internal database to tell you what an Index owns, the relevant balances, transactions, and positions can be reconciled against blockchain and market data. The result is a transparent separation: **Your wallet → your assets** **Index vault → Index assets** **Agōn → protocol and management layer** Agōn sits between the user experience and the underlying markets without becoming the custodian of user funds. *** ## Non-custodial by design. Your wallet belongs to you. Your assets remain under your control. The Index is managed through smart contracts. And the underlying activity happens onchain. **Agōn manages the Index. You own the wallet. The blockchain holds the record.** This documentation is built and hosted on [Mintlify](https://mintlify.com), a developer documentation platform.