> For the complete documentation index, see [llms.txt](https://unipilot.gitbook.io/unipilot-v2/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://unipilot.gitbook.io/unipilot-v2/the-pilot-protocol/range-prediction-and-strategy.md).

# Range Prediction & Strategy

Each vault’s range strategy will begin with default parameters relating to spread, tick average in a duration (twapDuration), and maximum price deviation. When the rebalance function is called, the smart contract calculates how much the price has deviated from the average tick in twapDuration, and the deviation should not be more than the max deviation threshold.

For the base position in a Community vault, the spread is either added or subtracted from the current tick. Maximum liquidity possible is added in the base position, while the remaining reserves are placed in the next range, which is either above or below the base range, depending upon the tokens remaining in reserve. The default parameters can also be modified for each pool using governance. For example, the spread for stable pairs could be set to a lower value compared to more volatile pairs. The architecture for this strategy is modular, allowing it to be adjusted to support any algorithm.


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