# Architecture

Private Pools Network operates with various components both online and offline. The key infrastructure, like asset security and hosting, is online. We use standard online contracts to manage liquidity, which have been reviewed for security pruposes. These contracts are based on the Balancer V2 framework but with some modifications to control who can access them. This ensures that only approved contracts can interact with the liquidity and execute the arbitrage exchange system.\
\
To further explore and define our system architecture, we have broken this down into two components:

{% content-ref url="/pages/r9nrt1YUYFptapSEzBbI" %}
[On-Chain Components](/ecosystem/architecture/on-chain-components.md)
{% endcontent-ref %}

{% content-ref url="/pages/Qp2ucqzPYkMDcuD2FWWY" %}
[Off-Chain Components](/ecosystem/architecture/off-chain-components.md)
{% endcontent-ref %}


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