# Portfolio Management

On NashPoint, each Node represents a custom investment strategy created by a Node Owner. Nodes custody user deposits along with the underlying investment assets. Owners define parameters controlling how their Node operates, including how deposits are allocated, managed, and rebalanced.

**Node Creation**: Owners permissionlessly create Nodes, each defining a unique investment strategy with specific parameters.

**Asset Selection & Allocation**: Owners select underlying investment components and set target allocation percentages (`targetWeight`) and acceptable deviations (`maxDelta`) for each asset.

**Reserve Ratio Management**: Owners determine a target reserve ratio, specifying the proportion of assets kept readily available to ensure sufficient liquidity for withdrawals.

**Rebalancing Parameters**: Owners configure rebalancing frequency (`rebalanceCooldown`) and the length of each rebalancing window (`rebalanceWindow`) to maintain the portfolio in line with strategic targets.

**Swing Pricing**: Owners can enable dynamic swing pricing, setting a maximum swing factor (`maxSwingFactor`) to incentivize user deposits and withdrawals that improve liquidity and stability.

**Liquidation Queue**: Owners define the liquidation order (`liquidationQueue`) in which assets are sold or redeemed during user withdrawals, ensuring efficient liquidity management.

**Modular Routers and Quoters**: Owners manage modular Router contracts (handling DeFi interactions) and Quoter contracts (handling asset valuations and pricing), allowing flexibility and continuous improvements in strategy execution.

**Fee Management**: Owners set annual management fees (`annualManagementFee`) and can optimize protocol execution fees by controlling the frequency and thresholds for rebalancing activities.
