Rule-Based Criteria

Rule-based criteria define deterministic events that trigger a rebalancing, independent of market sentiment.

1. Allocation Breach

If a constituent exceeds its maximum weight cap by more than X% (e.g., 35%) for five consecutive trading days, a rebalancing is triggered. This prevents overconcentration and preserves diversification standards.

See Weighting & Cap Rules for more details.

---

2. Eligibility Violation

Rebalancing is required if a token becomes ineligible due to:

• Liquidity collapse (failure to meet minimum trading volume)

• Delisting from major exchanges or custodians

• Governance incident or protocol failure (critical exploit, halted operations, etc.)

Ineligible assets are removed and replaced according to the index’s selection filters.

See Asset Selection Filters for more details.

---

3. Governance Vote

The OLTA DAO or governance committees may mandate an unscheduled rebalance through a formal vote. Governance-driven rebalancing ensures that strategic updates (e.g., sector definitions, risk constraints) are implemented transparently.

See Governance for more details.

---

4. Extraordinary Market Events

In case of black swan events (e.g., exchange collapse, systemic volatility), OLTA may apply a discretionary rebalance to preserve Index Price accuracy and investor protection. All such actions are documented in the index’s revision log.

See Execution & Pricing Risk for more details