# Arcadia DeFi Accounts

Arcadia DeFi Accounts are user-owned smart contracts that function like self-custodial wallets, but with added efficiency and automations. They allow users to batch multiple transactions and automate portfolio management, making complex DeFi interactions seamless.

Actions that would normally require multiple steps—like rebalancing liquidity positions, unwinding assets, or managing leverage—can be executed in a single transaction with an Arcadia DeFi Account.

There are 2 types of Arcadia Accounts:

1. **Spot Accounts**
   * Create LP positions with any assets.
   * No borrowing or leverage—just an optimal way to manage liquidity.
2. **Margin Accounts**
   * Support leverage by borrowing against collateral.
   * LP positions can only be created using allowlisted assets.
   * Assets inside the account contribute to its overall health, enabling greater flexibility in liquidity management.
   * Deposited and borrowed assets count as collateral.

Both account types benefit from **Arcadia’s automation tools** like the **auto-rebalancer** and **auto-compounder**, and one-click zaps, helping users optimize their liquidity positions effortlessly.

For a technical explanation what Arcadia accounts are and how they work, see [here](/protocol/arcadia-defi-accounts.md).


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