# Liquidity Rebalancing

### **ATTENTION! The project has been shut down! Details can be found at:**

<https://cadabra.gitbook.io/v2/articles/announcement-of-cadabra-finance-stopping>

### **Everything written below on this and all other pages is no longer relevant and is provided for historical information only. If you continue to use the project website or its smart contracts, you do so at your own risk.**

Liquidity rebalancing is adjusting liquidity distribution among yield sources within a strategy. Rebalancing occurs based on voting results at the beginning of the next epoch following the vote.

Cadabra users decide how to rebalance funds based on their forecasts for the next epoch’s yields or for any other reasons.

For example, if an underlying protocol is expected to provide higher yields, it may receive more votes, leading to more funds being allocated to it after rebalancing, resulting in higher amount UPR collected.

{% hint style="warning" %}
Cadabra reserves the right not to perform at all or to perform partially rebalancing if, based on factors such as market volatility, high transaction fees, or potential liquidity risks, it is deemed unprofitable or poses risks to liquidity providers within the strategy.
{% endhint %}


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