> For the complete documentation index, see [llms.txt](https://flype-protocol.gitbook.io/flype-protocol/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://flype-protocol.gitbook.io/flype-protocol/imm/the-math-behind-imm/imm-balancing-indicator.md). # IMM Balancing Indicator The current total value of the pool is:

We define the pool as balanced if Xc \* rX = Yc\* rY, i.e., the values of the LP token and ETH assets in the pool are equal. So, we can determine the pool to be balanced if:

The parameter ![](https://976579298-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Ftor5sd7sW1BdSm5MKyoe%2Fuploads%2FKmbYAPPOKfhVpe7dKWmV%2Fimage.png?alt=media\&token=a4245b9b-65e9-49a9-8237-e28478587be0) is used to measure the pool diversion from equilibrium state: If q>1 there is a shortage of ETH. If q>1 there is a shortage of ETH. Function f(q) is used to adjust the Oracle price according to the pool state.

The parameters a, b are set on the following range: 0 <= b < 1 0 <= a < ∞ Due to solidity efficiency limitations, parameter “a” can only be set to values starting from 0 and increasing in 0.5 increments till infinity. If q = 1, f(q) = 1, the pool is in equilibrium state and no adjustments are applied to the Oracle price. If q>1, f(q) < 1, the pool is in shortage of ETH and the pool internal rate will be less than the Oracle price. If q<1, f(q) > 1, the pool is in shortage of LP token and the internal rate will be higher than Oracle price.