# Rebalancing Mechanics A rebalance consists of two coordinated operations: #### 1. Withdrawal from Over-Allocated Strategies Strategies designated for reduction unwind positions and return liquidity to the canonical vault for settlement and reconciliation. #### 2. Allocation into Under-Allocated Strategies Once liquidity has been reconciled and accounting updated on zkSync, the routing layer allocates capital to designated strategies operating within the appropriate execution environments. The following rules apply: * Unwinds must complete and be validated before new allocations begin. * NAV is updated only after validated state inclusion. * No strategy receives new capital while its execution environment is paused or degraded. * Partial unwinds are permitted when sufficient liquidity is available; full unwinds are executed when required by risk or withdrawal conditions. * Liquidity cannot be double-counted or pre-allocated prior to confirmed settlement. Cross-environment capital flows are intentionally serialized through the zkSync vault to prevent phantom balances, race conditions, or accounting drift. --- # 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://multistake-1.gitbook.io/multistake-docs/documentation/rebalancing-and-routing/rebalancing-philosophy/rebalancing-mechanics.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.