> For the complete documentation index, see [llms.txt](https://docs.eiva.money/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.eiva.money/the-reserve.md). # The reserve Money set aside from Eiva's fees to cover unpaid invoices. If a payer doesn't pay, the loss comes out of the reserve before it reaches depositors. It's built from fee income, never from deposits, and it's shared across the vaults. ## How it fills * All net fees go to the reserve until it holds 3% of principal outstanding * Then half to the reserve and half to Eiva, until it holds 10% * Anything above 10% is released to Eiva at the end of each month Principal outstanding is the principal of every active note, so the targets move with deposits. \[Sizing against principal outstanding: solicitor and Alpha to confirm] How it's used: if an invoice is written down, the loss is taken from the reserve. Depositors' capital is affected only if the reserve runs out. Where it sits: at its own address, published on the Transparency page with its balance and today's target. \[Reserve address: Alpha] How long it stays: while any note is outstanding. It isn't distributed to depositors. \[Solicitor to confirm] --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation by asking a question. Perform an HTTP GET request on the following URL with the `ask` and `goal` query parameters: ``` GET https://docs.eiva.money/the-reserve.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is what the user is ultimately trying to achieve, the reason they need the answer. Sharing it helps GitBook give you a better, more relevant answer. A goal is most helpful when it describes the outcome the user wants rather than restating the question. For example, with `ask=how do I create an API token`, a goal like `automate deployments from our CI pipeline` lets GitBook tailor the answer to that use case. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.