Understanding Infra

Monarch Auto Vaults are built on top of Morpho Vault V2.

That is the core mental model to keep in mind.

Morpho Vault V2 gives you the vault contract, the role system, and the cap-based risk controls. Monarch adds a much friendlier interface on top so you can actually deploy, configure, and operate that system without reading raw contract internals.

The idea behind Vault V2

A Vault V2 vault is not just a pool of deposits. It is a structure with clear responsibilities:

• the Owner controls permissions
• the Curator defines the risk boundaries
• the Allocator can move capital within those boundaries
• Adapters are the allowed execution routes the vault can use

That separation is the important part.

Instead of saying "trust one manager for everything", the system splits:

• who is allowed to control the vault
• who decides the risk policy
• who can actually move capital

That makes the vault much easier to reason about from a risk-management perspective.

What Monarch adds

Monarch makes this system usable.

In practice, Monarch helps you:

• deploy the vault
• choose the asset and live chain
• configure market caps, collateral caps, and adapter caps
• assign an allocator
• inspect market allocations and role assignments

So the infra is Morpho Vault V2, and Monarch is the layer that makes it much easier to operate.

Why this structure is useful

This design is powerful because it lets you automate without giving up all control.

You can allow capital to move, but only:

• in approved markets
• within approved caps
• through approved adapters

That is the real promise of Monarch Auto Vaults: automation with boundaries.