According to Tetranode, Protocol FX offers liquidation protection by selling a portion of collateral at 88.8% Loan-to-Value (LTV) to maintain the LTV just below this threshold. This strategy effectively prevents liquidation by rebalancing the position to maximize long exposure at the bottom, thus avoiding funding fees and liquidation risks.

According to IntoTheBlock, DeFi institutions are more active in the market than retail investors, deploying significantly more capital and engaging proactively with protocols through constant rebalancing and position adjustments.

According to Michaël van de Poppe, a renowned cryptocurrency trader, rebalancing and taking profits in an altcoin portfolio is crucial for managing risk and maximizing gains. He emphasizes the importance of adjusting portfolio allocations based on market conditions and individual asset performance to maintain an optimal risk-reward ratio (source: @CryptoMichNL). Van de Poppe advises traders to set clear profit-taking targets and to regularly review market trends and asset valuations to identify when to rebalance or take profits (source: @CryptoMichNL).

According to BitMEX Research, a question was posed to Vlad Costea regarding the operational mechanics of a specific portfolio, specifically inquiring if rebalancing is part of the strategy. This indicates a focus on understanding the portfolio's management practices, which is crucial for evaluating its performance and risk management.