> For the complete documentation index, see [llms.txt](https://fxprotocol.gitbook.io/fx-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://fxprotocol.gitbook.io/fx-docs/f-x-protocol-mechanisms/rebalancing-the-position-liquidation-brake/understanding-the-band-system.md).

# Understanding the band system

Rebalancing operations are handled when the underlying price reaches a certain threshold (see [Risk parameters](/fx-docs/risk-management/risk-parameters.md)).\
\
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%.


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