> ## Documentation Index
> Fetch the complete documentation index at: https://docs.tilt.now/llms.txt
> Use this file to discover all available pages before exploring further.

# Set factor exposure bounds

> Set allocation or custom factor limits in the app for an account, model, or firm.

Use **Factor exposure bounds** in **Constraints** to limit an optimized portfolio's exposure to an asset-class type or a custom factor. You can set these bounds in the app for an account, model, or firm. An exposure bound controls the weighted exposure across holdings; an asset bound controls one ticker's weight.

> [!NOTE]
>
> Custom-factor upload is in development. You can configure bounds for built-in factors and custom factors already configured for your organization. Contact the [Tilt team](mailto:contact@tilt.now) to request a new custom factor.

## 1. Open Constraints at the intended scope

| Scope | Location |
| - | - |
| One account | **Clients → client → named account → Setup → Settings → Constraints** |
| Model | **Models → model → Setup → Constraints** |
| Firm defaults | **Firm → Setup → Constraints** |

On a client page, select a named account rather than **All accounts** to see **Setup**. Scroll to **Factor exposure bounds** in the Constraints editor.

Check the inherited values before editing. A non-empty account factor-bound list replaces the model or firm's list as a whole. A model list replaces the firm's list. Keep the factors you still need when creating a more specific list.

## 2. Add a factor and its bounds

Click **Add factor bound** and enter the exact factor name in **Factor**. For equity exposure, use `asset_allocation_equity`.

Tilt also supplies allocation factors for fixed income, commodity, currency, alternative, cash, private equity, crypto, and unknown exposure. The [built-in factor reference](https://docs.tilt.now/customization/factor-bounds.md#built-in-allocation-factors) lists their exact names and data requirements.

Enter a number in each of the four bound fields. This illustrative equity range allows 50% to 70% absolute exposure and a difference of −3 to +3 percentage points from the optimization benchmark:

| Field | Enter | Meaning |
| - | - | - |
| **Min** | `0.50` | At least 50% equity exposure. |
| **Max** | `0.70` | At most 70% equity exposure. |
| **Min active** | `-0.03` | At most 3 percentage points below the benchmark's equity exposure. |
| **Max active** | `0.03` | At most 3 percentage points above the benchmark's equity exposure. |

> [!NOTE]
>
> Factor-bound fields use the factor's units as entered. For allocation factors, enter fractions such as `0.50` for 50%. For an existing custom score, enter values on its configured loadings' scale.

Both ranges apply together. With 60% benchmark equity exposure, the illustrative active range permits 57% to 63% equity exposure, which also falls within the absolute range. Choose ranges that fit your mandate and the account's other constraints.

Use the optimization benchmark for the active comparison. A monitoring policy can use a different benchmark; [Models and benchmarks](https://docs.tilt.now/advisor/models-and-benchmarks.md) explains the references.

### Use an existing custom factor

Enter the exact name of a custom factor already configured for your organization. Confirm its availability, loading scale, and direction with the Tilt team before setting bounds. Adding its name in this editor does not create the factor or its asset loadings.

Custom-factor upload is in development. The [API guide](https://docs.tilt.now/customization/configure-factor-bounds.md#custom-factor-uploads-in-development) documents the upload format and replacement behavior for that work. Contact the team to request a factor while self-service upload is in development.

Monitoring's **Size** factor does not establish optimizer compatibility. Large-cap, mid-cap, and small-cap buckets require defined custom loadings; the built-in allocation factors do not include those buckets. A continuous Size score and a percentage allocation to a bucket measure different things. See [Size and capitalization buckets](https://docs.tilt.now/customization/factor-bounds.md#size-and-capitalization-buckets).

Contact the [Tilt team](mailto:contact@tilt.now) for another Tilt-supplied factor or help defining custom loadings. Include the exposure definition, units, asset universe, intended ranges, and active benchmark. [Request a new factor](https://docs.tilt.now/customization/factor-bounds.md#request-a-new-factor) lists the details to send.

## 3. Review and apply the change

For an account or model, click **Queue changes** to close the editor. Firm edits queue as you make valid changes. Open **Queued changes**, check the target scope and complete factor-bound list, then click **Apply** to save or **Discard all** to abandon the draft.

Reopen **Constraints** after saving and confirm the factor names and bounds. On an account or model, use **Use the inherited bounds** to return to the broader scope's list, then queue and apply that change. Removing the last local factor row also restores inheritance; check the resulting list before applying.

## 4. Optimize and inspect the proposal

After applying account changes, open the account's **Optimization** tab and run **Optimize**. Saving bounds changes optimization inputs. It does not run optimization or place trades.

Inspect the proposed holdings and factor exposures against both ranges. If the run is infeasible, review the absolute and active limits together with cash requirements, position limits, and trading restrictions. [How optimization makes tradeoffs](https://docs.tilt.now/advisor/optimization-explained.md) explains their interaction; [Review a rebalance](https://docs.tilt.now/advisor/review-rebalance.md) covers reviewing the resulting proposal.

For exposure alerts and oversight policies, use [Manage monitoring policies](https://docs.tilt.now/advisor/monitoring-policies.md).


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