# Reserve Fund Solomon maintains a reserve fund in case there is a need to deploy them under certain situations: * Negative Funding Rates * If there is an extended period of negative funding rates that precipitates Solomon needed to pay costs, this will come out of the reserve fund. * Sustained Depeg Event * If [USDv](/usdv/usdv-and-susdv.md) experiences a sustained depeg event, Solomon may use the reserve fund to bring it back in line with the peg. ## Details The reserve fund is funded by a percentage of protocol revenues. The percentage can change over time, responsive to the relative sizes of the Solomon protocol AUM and the reserve fund itself. Additionally, funds raised through private placement may be used to bootstrap the reserves initially. The assets in the fund will initially be only stablecoins. ## Reserve Custody The reserve funds will be held in a 3-of-5 Squads multi-sig. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.solomonlabs.org/usdv/rewards-engine/reserve-fund.md?ask= ``` The question should be specific, self-contained, and written in natural language. 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.