> For the complete documentation index, see [llms.txt](https://docs.adcpcapital.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.adcpcapital.com/protocol/reserves.md). # Reserves ## Liquidity Reserve A required minimum USDC reserve held to service redemptions, recovery, and withdrawals before any distribution or discretionary allocation is permitted. ## Risk Reserve A required minimum reserve held to absorb realized losses and bad debt before any distribution is permitted. ## Protocol Bitcoin Reserve (PBR) PBR is a separately accounted pool of protocol-owned BTC, governed by a strict constitutional rule: it may be funded **only** from (1) realized surplus, allocated through the surplus waterfall, and/or (2) explicitly loss-absorbing equity or founder capital that does not simultaneously carry a senior-capital principal-recovery claim. Moving senior recoverable capital into PBR is constitutionally forbidden — appreciation or accumulation of PBR can never come at the expense of a capital provider's own principal claim. > **PBR is structurally excluded from the current controlled pilot.** No PBR contract is deployed in this deployment's configuration, and no PBR functionality is reachable from it. This is a deliberate scope decision for the current pilot, not a limitation being worked around. ## Reserve sizing Exact reserve-sizing parameters, like every other pilot-calibration figure, are initial pilot values, not claimed-final production parameters. See [Risk and Solvency](/protocol/risk-and-solvency.md) for how reserve state interacts with the protocol's overall operating mode. --- # 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.adcpcapital.com/protocol/reserves.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.