The Problem with Symmetrical Rebalancing
When price drops below your range, your liquidity converts into mostly the volatile token (e.g., mostly ETH in an ETH/USDC pool). You’re now out of range and not earning fees.
A standard “Symmetrical” rebalance recenters a new range around the current price and rebuilds a roughly 50/50 position. If you’re sitting on mostly ETH after the drop, that means selling a large chunk of ETH near the lows to buy back USDC, locking in losses just to get back in range.
The Midpoint Solution
A “Midpoint” rebalance gets you back in-range without forcing a 50/50 reset. You choose a new lower bound near the current price, and the protocol computes an upper bound that biases the range toward what you already hold by preserving the midpoint of your original range.
If the price is at the bottom of your range, your position is mostly comprised of the volatile token. Instead of selling a lot of it to rebalance, midpoint sells only what’s needed to redeploy liquidity, so you can start earning fees again without selling low.
The tradeoff is a wider, skewed range, which can be less fee-efficient than a tight centered range. In return, you keep more exposure and generally benefit more if price later rebounds.
Auto-Tighten Recovery
After a midpoint rebalance, auto-tighten can execute additional recovery tighten rebalances while price is still below the midpoint of the original anchor range.
Auto Tighten Trigger After (hours) applies only to those recovery tighten rebalances, and those moves still count toward Max Rebalances per Day.
If price recovers back to the original midpoint anchor, the position is restored to the original range immediately. This full restore ignores the auto-tighten delay and bypasses Max Rebalances per Day because the recovery move is time-sensitive.