Rebalancing

Position A (30-day) matures:
├── Principal: $100,000
├── Interest: $800
├── Total: $100,800 now in cash

Decision: Redeploy to new position or adjust allocation?

Target: 33% each in 30d, 60d, 90d

Current (after market moves):
├── 30-day: 40% (+7%)
├── 60-day: 28% (-5%)
├── 90-day: 27% (-6%)
├── Cash: 5%

Drift exceeds 5% threshold → Rebalance

Current position: $200,000 at 7.5% (60 days remaining)
New market rate: 9.0% for 60 days

Potential improvement: +150bps
Consider: Exit current, enter new position

Vault AUM: $1,000,000
New deposit: $250,000 (+25%)

Deploy new capital according to strategy targets

const currentAllocation = await vault.getAllocation();
console.log(currentAllocation);
// {
//   positions: [...],
//   cash: 50000,
//   totalValue: 1000000
// }

const targetAllocation = {
  '30-day': 0.30,
  '60-day': 0.35,
  '90-day': 0.30,
  'cash': 0.05
};

const rebalanceActions = calculateRebalance(
  currentAllocation,
  targetAllocation
);
// [
//   { action: 'reduce', position: '30-day', amount: 70000 },
//   { action: 'increase', position: '60-day', amount: 50000 },
//   { action: 'increase', position: '90-day', amount: 30000 }
// ]

await vault.rebalance(rebalanceActions);

Starting State:
├── 30-day USDC @ 7.5%: $300,000 (30%)
├── 60-day USDC @ 8.0%: $350,000 (35%)
├── 90-day USDC @ 8.2%: $300,000 (30%)
├── Cash: $50,000 (5%)
Total: $1,000,000

Event: 30-day positions mature → $306,000 cash now

New State:
├── Cash: $356,000 (35.6%)
├── 60-day (now 30-day): $350,000 (35%)
├── 90-day (now 60-day): $300,000 (30%)

Rebalance Plan:
1. Deploy $206,000 to new 90-day positions
2. Keep $100,000 as new 30-day maturity ladder
3. Maintain $50,000 cash buffer

Execution:
├── Create lend order: $206,000 @ 8.3% for 90 days
├── Create lend order: $100,000 @ 7.8% for 90 days
└── Target allocation restored

// Set auto-rebalance rules
await vault.setAutoRebalance({
  enabled: true,
  driftThreshold: 0.05, // 5%
  rebalanceFrequency: 'weekly',
  preferredTime: '00:00 UTC',
  maxSlippage: 0.005 // 0.5%
});