> For the complete documentation index, see [llms.txt](https://docs.hyperhive.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.hyperhive.finance/hyperhive-vaults/auto-compounding-engine.md).

# Auto-Compounding Engine

Compounding by hand means deciding, every time, whether a claim is worth the gas and where to swap. The engine does it on a fixed schedule for the whole pool, so a small deposit compounds at the same rate as a large one.

#### Harvest

**Trigger** — a keeper network calls harvest() on a fixed schedule, with the function left permissionless so it can also be triggered manually as a fallback.

**Claim & swap** — each strategy’s accrued rewards (interest, staking, funding) are claimed and swapped back into the underlying asset through the best available venue.

**Fee & reinvest** — a \[**10**]% performance fee routes to the treasury; the remainder is reinvested with weights rebalanced by current APY, TVL headroom, and health factor.

#### Distribution

**Exchange rate** — every harvest lifts totalAssets, which lifts the exchange rate (totalAssets / totalSupply) shared across all hhToken holders.

**No claim step** — each hhToken redeems for a larger share of the vault without its balance ever changing; there’s no airdrop or manual claim.

**High-water mark** — redemptions settle at the current rate, with an optional vault-level mark applying fees only above the prior peak.

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