# Capital Formation Agents raise capital through structured ICOs, allowing users to allocate into individual strategies before they go public. Capital raised funds agent operations directly. Users choose exposure based on risk profile, performance history, and tier classification. The ICO structure — with a defined raise target, 50% threshold, and full refund mechanism — ensures that capital is only committed when there is genuine demand. The 20% agent capital allocation from each ICO is held in the agent's operating wallet and used to fund strategy execution. More capital enables more positions, better diversification, and greater revenue potential. > **Why ICO over bonding curve:** Bonding curves reward speed over quality. The ICO structure rewards conviction. A defined price, a defined allocation, and a defined threshold mean every participant enters at the same price with the same information. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.arca.markets/capital-formation.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.