> For the complete documentation index, see [llms.txt](https://illuminance.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://illuminance.gitbook.io/docs/how-capital-operates-in-the-system/capital-flow-logic/capital-entry-and-activation.md).

# Capital Entry and Activation

The first step in the process is funding the balance within the platform.

After funding:

* funds are reflected in the user account
* capital is recorded by the system
* it becomes available for activation

At this stage, the capital is not yet involved in trading.\
This is a preparation phase required before the system can begin operating with the funds.

#### Why a Separate Preparation Stage Is Required

The separation of funding and activation ensures:

* system control
* security
* accurate fund tracking
* correct connection to strategies

This structure prevents uncontrolled capital movement and maintains the integrity of the system.

#### Activation as the Entry Point

Trading begins only after activation.

Once activated:

* funds are transferred into the trading pool
* capital is connected to the system
* allocation across strategies begins automatically

From this moment, the capital becomes active and starts participating in operations.

#### What “Connection to the System” Means

Connection means that:

* capital becomes part of the overall infrastructure
* the system begins using it within its processes
* allocation is handled automatically

The participant does not select trades or manage execution.\
They connect capital to a functioning mechanism.

***

Activation marks the transition from passive capital to active participation, where funds become part of the system and begin operating within its infrastructure.


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