# Rebalance of Underlying Assets Since the subscription and redemption of xSolvBTC is a dynamic process, and it's accompanied by a two-way flow of underlying BTC assets between the SolvBTC Vault and the corresponding on-chain staking address of xSolvBTC, so Solv has designed a rebalancing mechanism for the underlying assets, which can allocate the underlying BTC assets as needed. The workflow of the rebalancing mechanism is roughly as follows: * Firstly, the rebalancing system will monitor in real time the number of subscriptions/redemptions of xSolvBTC by users, as well as the quantity of underlying asset transfers * Now let's assume that the number of underlying assets requiring rebalancing allocation is N, then N = \[Total number of subscribed (i.e. minted) xSolvBTC - total number of redeemed (i.e. burned) xSolvBTC - cumulative number of BTC already allocated), so: * When the N value is positive, the rebalancing system will coordinate to transfer the BTC in the SolvBTC Vault to the on-chain staking address of xSolvBTC. * When the N value is negative, the rebalancing system will coordinate to transfer the on-chain staked BTC assets of xSolvBTC back to the Vault of SolvBTC. --- # 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.solv.finance/key-products/xsolvbtc/xsolvbtc-asset-flow/rebalance-of-underlying-assets.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.