The Auto-Balancer automates the transfer of funds from the MPC main wallet to the Cold Vault on a per-account basis. This ensures that a significant portion of funds remains in the unhackable Cold Vault while maintaining necessary liquidity in the MPC. The Auto-Balancer checks and rebalances funds, according to the criteria you configure, every 15 minutes.

The Auto-Balancer works on a per-account, per-currency basis. This means the Auto-Balancer must be enabled and configured individually for every currency on an account, and each account has its own unique Auto-Balancers.

The Auto-Balancer ensures that a predefined percentage of funds is always kept in the Cold Vault, reducing the risk associated with keeping large sums in MPC wallets. It does this indirectly, by being triggered whenever the percentage of total funds in the MPC exceeds a preset level. This feature is especially useful for high-security environments and for users who require regular, automated fund management without manual intervention.

It should be configured according to organizational risk appetite. While the MPC is secure, it is a warm (online) wallet. The Cold Vault is offline, and thus the absolute safes option. By adjusting the balance between the MPC and Cold Vault, you can achieve the right organizational position vis-a-vis liquidity and security.

Setting the Auto-Balancer entails configuring three settings, the Balanced MPC Percentage, the Maximum MPC Percentage, and the Minimum Transaction Value in Fiat.

This refers to the ideal percentage of total funds that should be maintained in the MPC wallets to ensure operational liquidity while maximizing security by keeping the remaining funds in the Cold Vault. After the Auto-Balancer runs, this is the percentage of funds remaining in the MPC main wallet. Typically, this percentage is configured based on organizational needs and risk tolerance.

This is the upper threshold percentage of funds that can be held in MPC wallets before the Auto-Balancer triggers a transfer to the Cold Vault. When the funds in the MPC wallets exceed this percentage, the system initiates a balancing operation to bring the percentage back to the balanced MPC percentage.

This is the minimum value, in fiat currency, of an Auto-Balancer transaction. This is configured to avoid automated transactions incurring fees disproportional to the amount of the transaction.

For automated transactions such as those of the Auto-Balancer, the fee limit is set by the system max fee.

Taken together, the three settings can be used to control what the minimum balance is in the MPC. This ensures you always have the required liquid assets for your organization's strategy. The example below illustrates how.

In this example, we'll imagine the value of 1 BTC = 1000 USD.

For operational needs, we need to insure we have at least 2 BTC available in the MPC main wallet at all times.

The difference between Max% and Balanced% gives us a value. For instance, (30% maximum)-(20% balanced)= 10%. Remember, no transfer is triggered until the Max% is exceeded AND the minimum transfer value in fiat is met.

With the values set as above, we can now define the amount that 10% of the MPC funds need to be worth in fiat, at minimum. Let's peg the Minimum Transaction Value in Fiat at 1000 dollars, one Bitcoin.

With the Auto-Balancer now properly constrained, it will only be triggered when 10% of the account value is at least 1BTC. 20% would be 2BTC... With the Balanced percentage set to 20%, every tiggering of the Auto-Balancer would leave 2BTC behind in the main account.

The Auto-balancer is managed from the Accounts area of the Cold Vault.