Target-based rebalancing is easy to describe in theory: you set percentages and drift gets corrected. The annoying part in practice is when you want a large move into or out of cash. Doing it manually usually means reworking how much to sell or buy per asset so the rest of the book still matches the ratios you actually want.
**Why we added it:**
A lot of tools stop at periodic rebalancing. In real life the annoying part is moving a big chunk into or out of cash without redoing the math for every coin.
**What it does, in two parts:**
**Part 1 - Selling coins to build cash** (risk off, dry powder, “I want more on the sidelines”):
* If you want cash out of your coins, maybe you think the market might drop soon, or you need money for something else, or you just want more sitting in cash on the exchange, you raise your cash reserve target.
* Rebalify works out the sells so you move toward that cash level while keeping the mix between your remaining coins in line with the targets you set, so you are not manually figuring out how much to sell of each one.
**Part 2 - The opposite, putting cash back to work** (bonus, deposit, “I have extra to invest”):
* If you want more of your money in coins again, maybe you got a bonus, deposited extra, or you think it is a good time to put cash to work, you can deploy that cash toward your portfolio.
* Rebalify works out the buys so that money gets spread across your holdings according to the percentages you set, instead of you manually splitting the amount across each coin yourself.
So it is another layer on top of target rebalancing: move the cash lever up or down, and the trades follow from your targets instead of a one-off “sell everything” or “YOLO into one coin” workflow.