> For the complete documentation index, see [llms.txt](https://automatic-defi.gitbook.io/automatic-perpetual-futures-exchange/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://automatic-defi.gitbook.io/automatic-perpetual-futures-exchange/token-economics/automatic-foundation-guard.md).

# Automatic Foundation Guard

The Automatic Foundation Guard functions to protect the value underlying both rATP and ATG. As Automatic's guarantors of last resort, the Foundation Guard appropriates capital accrued through various funding mechanisms to reinforce stability in times of increased market volatility and black swan events. 

A fixed number of rATP and ATG tokens are set aside during the TGE and are paired against a growing reserve fund which, through Uniswap v3's token pricing system (Concentrated Liquidity Positions or "CLP's"), allocates additional liquidity within a specific range to operate as a set price floor. 

Automatic employs a specialized smart contract known as a "watcher" contract which constantly monitors the price and available liquidity underlying rATP and ATG; in the event of expontentially increased market volatility, the contract automatically deploys capital reserves into the floor price fund. When not actively in use, these funds are reapportioned to into vaults to generative conservative yield from otherwise idle capital.

The AFG is funded through 3 primary mechanisms:

1. [Liquidity Pairing Fees](/automatic-perpetual-futures-exchange/token-economics/platform-fees.md)
2. NFT sales and royalties 
   1. [Series A](/automatic-perpetual-futures-exchange/utility-nfts/series-a-acceleration.md)
   2. [Series B](/automatic-perpetual-futures-exchange/utility-nfts/series-b-automation.md)
   3. [Series C](/automatic-perpetual-futures-exchange/utility-nfts/series-c-efficiency.md)
3. [Bond Revenue](/automatic-perpetual-futures-exchange/token-economics/bonds.md)

{% content-ref url="/pages/P4KVHbTR0HKvhDPssKyS" %}
[Token Generation Event](/automatic-perpetual-futures-exchange/token-economics/token-generation-event.md)
{% endcontent-ref %}

{% content-ref url="/pages/ogYa2nALoDUVUoOxdzFj" %}
[v3 Dex Liquidity Pairing](/automatic-perpetual-futures-exchange/token-economics/v3-dex-liquidity-pairing.md)
{% endcontent-ref %}

To learn more about CLP's, please visit the resources linked below:

{% embed url="<https://docs.uniswap.org/concepts/protocol/concentrated-liquidity>" %}

{% embed url="<https://docs.uniswap.org/concepts/protocol/range-orders>" %}

<figure><img src="/files/a8dVg9LLA2DUI0jvKl9w" alt=""><figcaption><p>Automatic DeFi. Copyright 2023. All rights reserved.</p></figcaption></figure>