# Rebalance

1. The protocol enters the rebalancing state and pauses minting and burning operations.
2. The protocol first fetches the target index constituent token information, including rebalancing details, from the index compiler.
3. The protocol server sends a rebalancing quote request to PMM, which will return a quote order.
4. If the order price is favorable, the protocol will verify the order and notify PMM to fill the order.
5. During the rebalancing process, tokens are transferred between the protocol's custody wallet and PMM wallets. PMM will sell the tokens being removed from the index and buy the tokens being added. This process is secured by on-chain smart contracts to ensure the trustworthiness of the transactions.
6. After all trades are completed, the protocol updates the index token constituent information and marks the rebalancing process as complete.
7. Once the rebalancing process is complete, minting and burning operations resume.

<figure><img src="/files/sNWK6FIEEUX5tFayDL3q" alt=""><figcaption></figcaption></figure>


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