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

# Pseudo-Delta-Neutral Strategy

## The Strategy:

GMD Protocol’s Delta-Neutral vaults use a strategy we call the GMD **pseudo-delta-neutral strategy**, which will consist of 3 major key parts:

1. **Delta-Neutral Ratio**
2. **Manual Rebalancing of Deposits**
3. **Protocol's GLP Reserve (The Reserve)**

## The Strategy Explained:

Our pseudo-delta-neutral strategy is simple: 

* Deposited asset composition ratio is set equal to GLP asset composition ratio
* The deposited assets will be manually rebalanced so that the composition ratio will be exactly equal to GLP's asset composition ratio
* Any difference between deposited assets value and underlying GLP value will be made up by Protocol's GLP Reserve

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