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What is monthly rebalancing?

As an automated portfolio, the Midas team makes a rebalancing to equalize the value of each coin based on the split of your portfolio. Rebalancing takes profits from assets in your portfolio that have increased in value and reinvests these to undervalued assets to bring your portfolio long-term growth.

- DeFi YAP - rebalances 15th of each month
- Stable YAP - rebalances 1st of each month

Let's take DeFi YAP as an example since it has an equal allocation in each coin and it will be easier to illustrate, but it works the same for all YAPs

If you invest $800 in DeFi YAP then behind the scenes your deposit will be split and this amount will be used to buy coins for the portfolio, $100 (1/8 or 12.5%) for each coin in this case. So you will have $100 in each coin. Now let's imagine that one coin doubled in price and the rest stayed exactly in the same place. This would mean that your portfolio is now worth $200+100+100....+100 = $900. This profit will be evenly distributed among the other coins to maintain the same percentage for all coins When the time comes for the next rebalancing, the coins in the portfolio will be adjusted so that their dollar value returns to the original value (12.5%)

Last modified 1mo ago

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