# Auto-Rebalance With A51 Carbon, rebalancing happens autonomously on-chain. Rebalance works in conjunction with Market Modes. A51 Carbon offers two types of rebalancing namely: 1. Active: Active rebalancing adjusts your liquidity position within the TWAP by actively adjusting the distribution of tokens in your liquidity pool. It ensures your position is always active to keep earning fees and yields from trading volume. This can lead to excessive liquidity shifting and rebalancing, especially in narrow ranges leading to high divergence (impermanent) loss. Liquidity is always active and earning fees. 2. Trailing (*coming soon*): Trailing rebalancing works by trailing the liquidity with TWAP before executing the rebalance. It does so to wait for the current price to come back in range. This can reduce excessive liquidity shifting and rebalancing leading to less divergence (impermanent) loss. Liquidity is less active and earns less fees. Liquidity providers can further customize how rebalance happens: TWAP deviation: Provides rebalancing cushion in price swings. 1. Min deviation: Set the lower threshold of TWAP deviation. 2. Max deviation: Set the upper threshold of TWAP deviation. --- # Agent Instructions: 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: ``` GET https://docs.a51.finance/carbon/a51-carbon/key-intents/auto-rebalance.md?ask= ``` The question should be specific, self-contained, and written in natural language. 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.