# Composing Your Allocation The first step in creating a BSKT is selecting which tokens to include and how much weight each should have. ## Selecting Tokens Search for and add ERC-20 tokens available on the Ethereum network (Base and other networks coming soon). The token list is sourced from validated registries, so you only see legitimate tokens. For each token you add, you assign a **weight:** the percentage of the basket's total value that should be allocated to that token. ## ALVA Allocation Currently, every BSKT on Ethereum must include ALVA as part of its allocation. The minimum ALVA percentage is set by the protocol and is enforced automatically. This requirement: * Creates consistent demand for the ALVA token * Connects every basket to the Alvara ecosystem * Ensures all BSKTs contribute to the protocol's tokenomics The remaining allocation is entirely up to you. > **Note:** With the upcoming Base deployment, the mandatory ALVA minimum will become a variable parameter. Including ALVA in your allocation will unlock reduced platform fees rather than being a strict requirement. ## Weight Rules * All weights must add up to exactly **100%** * Each token must have a weight greater than 0% * The ALVA allocation requirement must be met (see above) * There is no maximum number of tokens, but larger baskets may incur higher gas costs ## Token Tax Detection Some tokens have built-in buy or sell taxes. The platform automatically detects these taxes during the composition step and adjusts slippage settings per-token to ensure transactions complete successfully. If a token has a detected tax, you'll see it noted in the interface. You can also manually adjust per-token slippage if needed. ## Tips for Good Allocation Design * **Diversification:** Spreading across multiple tokens reduces the impact of any single token's decline * **Conviction weighting:** Assign higher weights to tokens you have the most confidence in * **Liquidity awareness:** Tokens with very low liquidity may experience higher slippage during rebalancing * **Rebalancing frequency:** Consider how often you plan to rebalance when choosing the number of tokens. More tokens means more complexity. --- # 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.alvara.xyz/bskt-lab/composing-your-allocation.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.