> For the complete documentation index, see [llms.txt](https://docs.ipor.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.ipor.io/fusion-for-institutions/institutional-grade-infrastructure.md).

# Institutional-Grade Infrastructure

Fusion is built on a foundation of strict asset segregation and standardized interoperability, mirroring the structure of **Separately Managed Accounts (SMAs)**.

## **Segregated Mandate Vehicles**

Each **Fusion Vault** is an isolated **Mandate Vehicle** with:

* **Dedicated Custody:** Assets are owned directly by the specific vault contract and cannot be commingled across different vehicles.
* **Independent Configuration:** Every mandate has its own dedicated market whitelist, risk parameters, and fee structures.
* [**ERC-4626**](/build-on-fusion/architecture-overview/what-is-a-fusion-vault.md#erc4626) **Compliance:** The use of the industry-standard tokenized vault interface ensures seamless integration with institutional custody solutions, reporting tools, and collateral management systems.
* **Upgrade Safety:** Logic can be updated without the risk of corrupting existing vault data or asset balances, providing institutional-grade continuity.

## **Modular Execution Adapters (The Fuse System)**

The protocol interacts with external DeFi venues (e.g., Aave, Morpho, Uniswap) via **Execution Adapters**, referred to as [Fuses](/build-on-fusion/architecture-overview/what-is-a-fuse.md). These are immutable, stateless connectors that act as "pipes" between the vault and the market.

* **Curated Universe:** The Vault Curator defines the authorized "investment universe" by whitelisting specific Fuses. Assets never leave this defined environment.
* **Stateless Execution:** Fuses contain only the logic for protocol interaction; all assets and accounting remains within the vault's primary contract logic.