> For the complete documentation index, see [llms.txt](https://limitless.gitbook.io/limitless/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://limitless.gitbook.io/limitless/advanced/rebalancer-incentives.md). # Rebalancer Incentives Off-chain rebalancers are participants who 1. force closes positions with depleted premium deposits 2. fills add/reduce orders ### Force closing incentives A rebalancer will force close a position when a premium deposit is depleted, which is triggered when the instantaneous premiums quoted > the premium deposit. The protocol is designed such that all the remaining margin of the force closed position is the resulting profit for the closing rebalancer, where the remaining margin is simply the remaining proceeds after all debt has been repaid to the AMM. #### Can a rebalancer profit from closing healthy positions? No. A position can only be forcibly closed if the instantaneous premiums quoted > the premium deposit. However, the instantaneous premiums quoted are a function of time \* rate. Even if the rate was made high within a block it would take at least dozens of blocks for it to become greater than the position's premium deposit. ### Order filling incentives A rebalancer will fill an order if the action is profitable given current prices and liquidity conditions. For example, an order that needs 1ETH in exchange for 2000USD will be filled by a filler as soon as the market price of ETH(including slippage + fees) is marginally less than 2000USD. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## 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, and the optional `goal` query parameter: ``` GET https://limitless.gitbook.io/limitless/advanced/rebalancer-incentives.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. 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.