> For the complete documentation index, see [llms.txt](https://docs.origami.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.origami.finance/the-second-fold-v2/how-does-a-leveraged-origami-vault-work/targeted-exposure.md).

# Targeted Exposure

<figure><img src="/files/mMpy5r5YmWynGVSuUdu0" alt=""><figcaption></figcaption></figure>

<figure><img src="/files/HfL4BDfdXSW6A7mI3V9Z" alt=""><figcaption><p>Fig 1. Rebalances for the Lov-Token vault are called by bots when certain conditions are met</p></figcaption></figure>

The A/L ratio configurations for each lov-Strategy vault help ensure that the vault will *operate programmatically* within its target ***Effective Exposure*** range most of the time to generate consistent leverage levels. At deployment, each lov-Strategy vault is configured with bespoke A/L ratio (LTV) floor and ceiling thresholds.&#x20;

The [RebalanceUp](/the-second-fold-v2/how-does-a-leveraged-origami-vault-work/rebalancing-up.md) and [RebalanceDown](/the-second-fold-v2/how-does-a-leveraged-origami-vault-work/rebalancing-down.md) function calls are automated and executed via Flashbots to avoid MEV attacks. Both the size of the Rebalance and the odds of a successful call are randomised to further mitigate risk of front-running or arbitrage (Fig 1).

For capital efficiency, a Rebalance will not be triggered by normal market price fluctuations or relatively small vault flows while still ensuring the vault can automatically repay lenders should the leverage position health ratio deteriorate significantly. See the [Limits](/the-second-fold-v2/how-does-a-leveraged-origami-vault-work/vault-limits.md) section for more details about the Effective Exposure range that the vault Rebalance mechanism will target.

{% hint style="info" %}
The programmatic vault rebalance mechanism may not function as expected in severe or extended depeg scenarios. Origami Team does not perform active, discretionary, or "manual" rebalances on a vault, nor does it have custody over vault user deposits.&#x20;
{% endhint %}


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