> For the complete documentation index, see [llms.txt](https://learn.w3.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://learn.w3.io/cookbook/real-world-assets/multi-party-asset-rebalancing.md).

# Multi-party Asset Rebalancing

This recipe allows Portfolio managers to automatically rebalance RWA’s according to predetermined formulas.

**Partners**

<div align="left"><figure><img src="https://content.gitbook.com/content/zATpZg4fKftXAgKBrsPs/blobs/AYmqaLQOB6FAvUC6bmW9/mult-party-rebalancing.svg" alt=""><figcaption></figcaption></figure></div>

* **Trident3**: Manages identity requirement verification between platforms.&#x20;
* **Space and Time**: Portfolio Model Storage and Performance Analytics.
* **Yelay**: Multi-chain Order Management and Trade Execution.
* **Innerworks**: Transaction Validation and Portfolio Reconciliation.
* **Privado ID**: Regulatory Compliance and Identity Management.

**Example Use Case**\
\
JP Morgan’s portfolio managers enable their customers to\
automatically rebalance RWA’s based off predetermined models.

**Benefits**

* Multi-layer verification and validation across all participating entities ensures secure cross-party transactions
* Real-time compliance checks and identity verification across multiple parties and jurisdictions
* Streamlined multi-party settlement process reduces operational overhead and settlement time
* Every step of the multi-party process is recorded on-chain with cryptographic proofs
* Easily add new parties and assets while maintaining security and performance

**Sequence**

{% stepper %}
{% step %}
An event triggers the rebalancing process. This could be a periodic review, a market condition change, or a manual action by the portfolio manager.

{% endstep %}

{% step %}
Identity Recipe - A version of the previously outlined Identity Recipe is used to re-verify the user's identity to ensure ongoing compliance with regulatory requirements. A successful result is batched, put on-chain, and a trigger for the rebalancing to continue is initiated.

{% endstep %}

{% step %}
A query is sent to SxT to identify the pre-defined characteristics of the rebalancing model.

{% endstep %}

{% step %}
SxT sends information about the rebalancing model to Yelay.

{% endstep %}

{% step %}
Yelay determines the respective buy/sell orders necessary to rebalance the account.

{% endstep %}

{% step %}
Yelay creates the trade orders specifying the assets to be bought or sold, the quantities, and the target prices, this information is then sent to SxT.

{% endstep %}

{% step %}
Yelay simultaneously submits the trade orders to the blockchain using smart contracts.

{% endstep %}

{% step %}
The smart contracts execute the buy/sell orders.

{% endstep %}

{% step %}
W3.io confirms that the trades have been executed successfully, batches the trade details, and puts them on-chain.

{% endstep %}

{% step %}
W3.io sends notifications to the portfolio manager and the investor about the completed trades and any changes to the portfolio.

{% endstep %}
{% endstepper %}