> ## Documentation Index
> Fetch the complete documentation index at: https://docs.bayex.xyz/llms.txt
> Use this file to discover all available pages before exploring further.

# Protocol Architecture

> Understanding the components that power Bayex's gasless, high-frequency trading experience.

<Note>
  **Technical Deep Dive**

  This section explores the underlying infrastructure that makes Bayex possible.
</Note>

## System Components

<CardGroup cols={1}>
  <Card title="Smart Accounts (Safe)" icon="shield-halved">
    User wallets on Bayex are not EOAs (Externally Owned Accounts). Instead, we deploy a **Safe** (formerly Gnosis Safe) for every user.

    **Compatibility:** We utilize the exact same proxy architecture as **Polymarket**. This means if you have an existing Polymarket account, it is **100% compatible** and usable on Bayex immediately.

    This Smart Account acts as a proxy, allowing for:

    * <Icon icon="circle-check" iconType="solid" color="#22c55e" /> **Gasless Transactions (Sponsored)**
    * <Icon icon="circle-check" iconType="solid" color="#22c55e" /> **Batched Operations (Wrap + Swap)**
    * <Icon icon="circle-check" iconType="solid" color="#22c55e" /> **Session Keys (Future Scope)**
  </Card>

  <Card title="The Relayer" icon="network-wired">
    Bayex utilizes a centralized (but strictly non-custodial) relayer service to submit transactions on behalf of users.

    `User Signature (EIP-712) -> Relayer API -> Blockchain -> Execution`

    This ensures users never need MATIC (Polygon gas token) to interact with the protocol.
  </Card>

  <Card title="CT Wrapper Contract" icon="box-open">
    The core innovation. Polymarket uses the Conditional Tokens Framework (ERC-1155). To make these compatible with Uniswap V4 (which works best with ERC-20s), we use a Wrapper.

    <CardGroup cols={2}>
      <Card title="Wrap">
        User sends ERC-1155 -> Wrapper locks it -> Mints ERC-20 (CTERC20)
      </Card>

      <Card title="Unwrap">
        User burns ERC-20 -> Wrapper unlocks ERC-1155 -> Sends to User
      </Card>
    </CardGroup>
  </Card>

  <Card title="Uniswap V4 Pool Manager" icon="server">
    We use the singleton `PoolManager` contract to host all our prediction market pools.

    * **Hooks:** (Currently minimal) Future capability to add dynamic fees or KYC logic.
    * **Flash Accounting:** Efficient multi-hop swaps or complex portfolio rebalancing in a single transaction.
  </Card>
</CardGroup>