Funded before the hard part.
Use, timing, and limits
| Aspect | Detail |
|---|---|
| Use | Buying PAPER below target: standing buy orders at 0.95–1.0× target, plus discretionary purchases by the reserve multisig. Bought-back PAPER is held. There is no buyback fund contract. |
| When | Funded before launch, then added to over time. |
| Limit | Neither the reserve nor its buybacks is a guarantee, an account balance for PAPER holders, or an assurance of liquidity at any price. |
What it holds and where it comes from
The Ink Reserve holds SPY and the protocol's own liquidity. Its sources include a reserve segregated before launch, the LP sold through bonds, oPLATE exercise proceeds, a share of pool swap fees, and genesis's 1% in-kind deposit fees.
Not the RECEIPT reserve
The Ink Reserve holds SPY and the protocol's own liquidity, and funds buybacks. It does not fund RECEIPT redemption: that pays out of a separate, PAPER-denominated redemption reserve the Treasury builds itself from a share of above-target prints, and from any print made while no PLATE is clamped. The two reserves hold different assets, are funded differently, and cover different obligations. Read The Shredder & RECEIPT for the redemption reserve.
Read Security & Risks.