# How It Works

**HedgePay** incorporates our proprietary risk reduction algorithm to analyze potential assets before investment. Risk analysis assists in the decision of divestment of assets and modular smart contracts distribute capital, proportionally. This mechanism is built into our internal protocols to make sure that rewards are consistently generated.

The algorithm we have developed automatically distributes capital into various investment strategies in order to secure rewards as stable assets. This methodology ensures a way to maximize profits that are resistant to traditional market pressures.

The main focus of our protocol is to create an ecosystem that allows the indefinite generation of rewards, thus we have engineered our platform to follow this principle. The **HedgeFi Capital Fund** is managed through our modular smart contracts to increase its valuation throughout market cycles and implicitly generate rewards to our users.

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All the internal working of the protocol is elegantly abstracted to the investor and the process is simplified to the purchase of our **HPAY** token. Investors that reach the minimum **HPAY** balance in their wallet will secure their stable asset income to be received on a recommended monthly basis. Rewards can be withdrawn earlier on a prorated fee basis. These fees are allocated back into the **HedgeFi Capital Fund** to supplement an increase in reward generation.
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