> For the complete documentation index, see [llms.txt](https://docs.extrafi.io/extrafi-xlend/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.extrafi.io/extrafi-xlend/multi-account-system/how-it-works.md).

# How it Works

**Account Explanation** 

When you create a sub-account (smart account), it’s bound to your connected wallet (or EOA), with your wallet address set as the sole owner during account creation. 

All actions for your sub-accounts must be signed with your connected wallet, ensuring you maintain full control over them.

#### Features

* **Sub-accounts:** Enables flexible management of isolated positions.
* **Improved on-chain experience:** Simplifies user operations through bundled transactions, reducing the need for continual signatures.
* **Automation**:\* Manages position health automatically, helping users avoid liquidation.
* **Intent-based actions:**\* Allows users to set up one-click strategies with predefined workflows.
* **More EIP-4337 features:**\* Supports gas-free transactions.

Reference:\
<https://github.com/coinbase/smart-wallet?tab=readme-ov-file#passkey-owners-and-ethereum-address-owners>