Understanding the band system

Rebalancing operations are handled when the underlying price reaches a certain threshold (see Risk parameters). To maximize the efficiency of these operations and ensure it is profitable for the keeper to execute them, all xPOSITIONs are grouped into the same price bands. Each price band width is 0.15%. If your rebalance price is $1710, when the price of ETH falls below that price, all xPOSITION who have a rebalance price between $1710 and $1712 will be rebalanced together.

Example

Alice opens a 2x position when ETH trades at $3000. She will be rebalanced when ETH price falls 43.2%, which is $1704 (LTV=88%)

Bob opens a 5x position when ETH trades at $1880. He will be rebalanced when ETH price falls 9.09% which is $1704 (LTV=88%)

Both Alice and Bob put in the same band. Once ETH price falls below $1704, all positions in this band will be rebalanced and brought back below LTV=88%.