# Overlays

Instruments flagged as **Overlay** in the *Define Portfolios* screen are not included when calculating the sum of weights constraint during optimization. 

![Classifying instruments as Overlays](https://2662147689-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MEd8w0azNaE8v7NnoDC%2F-MEyZPgSimmZv1jhKUPA%2F-MEyZmTDIZhOIv5CfUxn%2Fimage.png?alt=media\&token=161c1e23-2871-4430-ac92-2da4dd035bad)

Some examples of overlay instruments are options, futures, swaps, and other derivative risk management instruments. We assume that these instruments do not require capital unlike instruments in the cash markets.