Hmm good question. With a 50% loss range (cushion) between the value and the floor, and a multiplier of 2, you are 100% invested in stocks (2m - 1m floor = 1m cushion x 2 (multiplier) = 2m invested in stocks). If stocks rise, there is no cash to buy more.
E.g. if stocks rise 10% by the next RB date, 2m x 1.10 = 2.2m - 1m floor = 1.2m cushion x 2 (multiplier) = 2.4m target in stocks
You don’t have any cash so you’d have to borrow 200k to actually RB.
In a case where there are constraints on using leverage, I’m guessing we simply top out to the upside using the above parameters, and only rebalance when the cushion is below 1m.