> ## Documentation Index
> Fetch the complete documentation index at: https://docs.cesto.co/llms.txt
> Use this file to discover all available pages before exploring further.

# Rebalancing

> Keep your positions aligned with the strategy.

## Why rebalancing matters

A basket isn't a one-time purchase. It's an active strategy. When you invest in "Made in America" or "Defense Mode," you're not just buying a static set of tokens. You're investing in a thesis, and that thesis has a specific allocation designed to maximize its potential.

Markets don't sit still. Prices move, some assets outperform, others lag. Over time, your actual holdings drift away from the basket's intended weights. A position that was supposed to be 15% of your portfolio might balloon to 25%, while another shrinks to 5%. Your portfolio no longer reflects the strategy you invested in.

Rebalancing fixes that.

## How it works

Cesto continuously tracks your positions against the basket's target allocation. When your holdings deviate, whether from market movement or manual changes you've made, the [Rebalance](https://app.cesto.co/rebalance) page shows you exactly what's out of alignment and what needs to change.

One click, and your portfolio snaps back to the strategy's intended weights. The rebalancing engine handles the complexity: figuring out what to sell, what to buy, and executing it all for you.

## Regular updates

Baskets aren't set in stone. The strategies behind them are actively maintained and updated to reflect current market conditions and the evolving narrative. When a basket's composition changes (new assets added, weights adjusted, positions removed), your Rebalance page will reflect those updates so you can stay current.

This means you're not just rebalancing against a stale target. You're realigning with a strategy that's being actively managed to get the most out of the thesis you invested in.

## What triggers a rebalance

There are two main scenarios:

**Market drift.** Prices move and your allocations shift away from the target. The further they drift, the less your portfolio represents the original strategy.

**Manual changes.** If you independently buy or sell any of the assets in your basket, your allocations will deviate from the strategy. Rebalancing brings you back in line.

In both cases, the rebalance engine accounts for the full picture (every position, every weight, every edge case), so you don't have to think about it.

## Manual or automatic

By default, rebalancing is in your hands. Cesto shows you the opportunity and handles the execution, but you decide when to pull the trigger and approve each rebalance yourself.

If you'd rather not think about it, you can **opt in to automatic rebalancing** on a per-basket basis. When auto-rebalance is on for a basket, Cesto realigns your position for you whenever the strategy is updated to a new version, so you're always tracking the latest allocation without lifting a finger. You stay in control of the switch: it's off unless you turn it on, and you can turn it off again at any time.

Some things to keep in mind:

* **Rebalancing involves swaps**, which means transaction fees apply
* **Manual is the default**: nothing is rebalanced automatically unless you opt in for that basket
* **Review before confirming**: for manual rebalances, you see exactly what will change before approving