Documentation
How Kite works
Everything about the vault, the agent, the token, and how to verify all of it on-chain.
01
Overview
Kite is an AI-managed treasury on Robinhood Chain. Every trading fee generated on the platform flows into an on-chain vault, and Claude Fable 5 decides how that capital is deployed across tokenized real-world assets: stocks, ETFs, bonds, and commodities.
There is no fund manager, no multisig committee voting on allocations, and no fixed index. The agent reads markets continuously and rebalances when its signals clear a threshold. Every decision is published on-chain with its reasoning.
02
How the Vault Works
The flow has three stages:
- Fees arrive. A fee router contract forwards 100% of trading fees to the treasury wallet. Nothing else funds the vault.
- The agent allocates. Fable 5 deploys treasury capital into tokenized RWAs on Robinhood Chain, within hard policy limits.
- Profits split. Realized gains are distributed automatically by contract: buyback and burn, treasury growth, staking rewards, and development.
The vault started at zero. Its entire history, from the first fee onward, is reconstructable from chain data alone.
03
The Agent
The allocator is Claude Fable 5 running in a continuous loop. Each cycle it ingests macro headlines, earnings and filings, ETF flow data, and price action, then scores every asset on its watchlist.
Hard policy limits are enforced before any order reaches the chain:
max position size 12% of treasury
cash floor 15% minimum USDC
portfolio risk cap 0.6
asset universe allowlisted tokenized RWAs only
The agent cannot transfer funds out of the treasury. Its only permitted actions are trading within the allowlist and triggering the fixed distribution contract.
04
Cycle Lifecycle
Cycles run hourly. Most end in a hold; the agent only trades when a signal clears its execution threshold.
1. ingest gather headlines, filings, flows, prices
2. signal score signals against the watchlist
3. target compute target weights vs current
4. order place orders if drift clears threshold
5. settle confirm fills on Robinhood Chain
6. log publish reasoning and results on-chain
05
Profit Distribution
Realized profits from each cycle split automatically by smart contract:
Buyback & Burn
Buys $KITE on the open market and burns it
Treasury Growth
Compounds back into the vault
Staking Rewards
Accrues to a reserve until staking launches
Development
Funds the dev wallet, fully public
Losses are never socialized: a losing cycle simply distributes nothing and the treasury absorbs the mark-to-market.
06
The $KITE Token
$KITE is a claim on the AI-managed portfolio, launching Q4 2026. Supply is fixed at 1,000,000,000 with no emissions.
Value accrues through three channels:
- 40% of all profits buy back and burn $KITE, permanently reducing supply.
- 30% compounds the treasury the token represents a claim on.
- Stakers earn 20% of profits, paid in USDC, not in inflationary token emissions.
The token launches only after the vault has a public, verifiable track record. No presale mechanics are part of the vault design.
07
Transparency
Every cycle publishes a reasoning log, an execution record, and (when profitable) a distribution record. The reasoning log format:
{
"cycle": 1,
"at": "<timestamp>",
"thesis": "why the portfolio is
changing, in plain language",
"signals": ["what the agent saw"],
"risk_score": 0.0
}Logs are content-addressed and anchored on-chain, so history cannot be rewritten after the fact. If a trade went badly, the reasoning that led to it stays public forever.
08
Addresses
The protocol uses exactly three addresses. All of them are public:
Addresses publish at deployment and will never change. Bookmark them from this page or the dashboard; never trust addresses from DMs or chat.
09
FAQ
Where does the money come from?
Only from trading fees. Every trade on the platform routes its fee to the treasury wallet. There are no deposits, no token emissions, and no fundraising baked into the vault.
Does the AI hold custody of user funds?
No. The vault only manages protocol fee revenue. Users never deposit into the treasury, so there is nothing to withdraw or lose access to.
What happens in a drawdown?
Positions are bounded by policy before any order is placed: max 12% per position, a 15% cash floor, and a portfolio risk cap. In stressed markets the agent rotates toward cash and defensive assets. Losses reduce the treasury; they never create liabilities.
Can the agent go rogue?
The agent can only trade tokenized assets on an allowlist, within policy limits enforced on-chain. It cannot transfer funds out of the treasury; profit distribution follows the fixed contract split.
When does the $KITE token launch?
Q4 2026, after the vault has a public track record. Supply is fixed at 1,000,000,000 with no emissions.
How do I verify any of this?
Every address the protocol uses is public. Watch the treasury directly on the explorer, read the reasoning log for any cycle, and match each trade to its settlement transaction.