# Decision Cycles A decision cycle is one complete evaluation-and-action pass performed by RaxBot. Each cycle follows a fixed sequence of steps and produces one of several possible outcomes. *** #### Possible Outcomes **Hold** — The current allocation is within acceptable parameters. No action needed. This is the most common outcome in stable conditions. **Rebalance** — Conditions have changed enough to warrant adjusting allocations. If the mandate allows auto-execution and compliance checks pass, the rebalance is executed on-chain immediately. **Pending Approval** — The proposed change is compliant but exceeds the approval threshold defined in the mandate, or auto-execution is disabled. The user is notified and must approve or reject. **Rejected** — The proposed allocation violates one or more mandate constraints. No action is taken. The violation details are logged. **Emergency Stop** — A critical condition has been detected. The vault is paused automatically. No human approval is required — this is a safety mechanism. **Paused** — The vault was already paused. The cycle logs this state and takes no further action. *** #### What Triggers a Rebalance A rebalance is triggered when any of the following conditions are met: * The vault has no current allocations (initial allocation required) * The current risk score exceeds the mandate's maximum allowed risk score * The deviation between current and proposed allocations exceeds the rebalance threshold *** #### Emergency Triggers Emergency stops are automatic and non-discretionary. They activate when: * Maximum drawdown is breached (current value has fallen too far from peak) * Risk score exceeds 150% of the mandate's maximum * Liquidity risk exceeds 85/100 When an emergency stop fires, the vault is paused on-chain. No deposits, withdrawals, or rebalances can occur until the pause is lifted. *** #### Cycle Frequency The minimum interval between cycles is configured in the mandate. Even if a cycle determines that rebalancing is needed, it will not execute if the minimum interval has not elapsed since the last rebalance. --- # 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.raxprotocol.xyz/raxbot-coming-q3-26/decision-cycles.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.