# Rebalance

## How? <a href="#how" id="how"></a>

1. Click Original Target% or Fund % target and change the weight accordingly
2. Default of 1.00% price tolerance
3. Click Update and Rebalance to sign the transaction in MetaMask wallet

![](https://gblobscdn.gitbook.com/assets%2F-MRUCTGUtDlsnG61LBdq%2F-MRUqVr1gr5UQvIbOThM%2F-MRUsjUoxPoRnQyyVP6M%2Frebalanceallinone.png?alt=media\&token=13b4c2b8-feda-44cf-88d4-f37548a1deee)

Target will be updated and buy and sell occurred in single process

## Why does rebalance needed? <a href="#why-does-rebalance-needed" id="why-does-rebalance-needed"></a>

This feature can only be accessed by fund owner. As the target is set as fixed weight, the weight in the pool will deviated from the target weight as time goes by due to the volatilities of underlying tokens are differed. Fund owner are allowed to rebalance the fund back to the target weight. It can either maintain the weight as it is or to add new token into the basket as needed.

## How it works? <a href="#how-it-works" id="how-it-works"></a>

xWin accept the price impact tolerance from fund owner. The protocol identify the excess weight and calculate the total quantity need to be sold and bought. Every single process is carried on-chain.

<table><thead><tr><th>Token</th><th>Target %</th><th>Quantity</th><th>Action</th><th>Action</th><th>Active %</th><th width="200"> Fund %</th><th data-hidden></th><th data-hidden>Action</th><th data-hidden></th></tr></thead><tbody><tr><td>BAT</td><td>60%</td><td>1000</td><td>Overweight</td><td>Sell </td><td>-5.05%</td><td>55.50%</td><td></td><td></td><td></td></tr><tr><td>DAI</td><td>40%</td><td>200</td><td>Underweight</td><td>Buy</td><td>+5.05%</td><td></td><td></td><td></td><td></td></tr></tbody></table>


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