> For the complete documentation index, see [llms.txt](https://factorial-1.gitbook.io/temp-flip-denver/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://factorial-1.gitbook.io/temp-flip-denver/getting-started/contracts-overview.md).

# Contracts Overview

Factorial consists of the following contracts.

![Factorial Architecture](https://1108866518-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FMNSfMAwaMYILzCSJF6tU%2Fuploads%2Fgit-blob-a41c84494bc036370c0878e632806b3f6a056220%2Ffactorial-architecture.png?alt=media)

## Factorial Router

Factorial Router forwards the user's request to the corresponding app under the supervision of Risk management.

## Connector

Connector is the abstract layer connecting to external DeFi. Connector consists of `Connection Pool`, `Connection`, and a specific `Connector`, where `Connection Pool` manages `Connection`. `Connection` is a contract to make DeFi position as NFT. Since the DeFi position is NFT-tokenized, the Connector module of Fatorial does not require to manage unnecessary state values in order to prove the ownership of the DeFi positions.

## Liquidation

Liquidation enables the apps on Factorial to enjoy a shared liquidation environments. Factorial can provide various types of liquidation, e.g., simple swap liquidation and auction liquation, where the liquidation type can be added continuously.

## Risk Management

Risk Management monitors and restricts the asset flow by transactions. This consists of the functionalities as asset management and limition of risk factor. `Asset Management` converts user's assets(ERC20) into factorial assets and give them to the app. This can prevent malicious losses by tracking the changes of the user assets. `Asset Management` of Factorial does not require the process of approval in order to remove the potential risk.

## Trigger

Trigger module enables the App on Factorial to provide various actions that require Trigger, e.g., Liquidate, Stop-loss, take-profit, maturity. Automation pool provides the connection with external automation triggerer, e.g., Chainlink automation node.

## Valuation

Valuation module measures the value of a DeFi position by using tokenization with external oracles. `Tokenization` turns a DeFi position into a token (i.e., ERC1155) so that it can be easily valuated and collateralized.