# Reservoir Overview Reservoir was built to be the most trusted and scalable decentralized, next-gen stablecoin protocol. The importance for a decentralized, scalable, efficient, and yield-bearing stablecoin has never been more clear and necessary to onboard and cross-collateralize the next $1T of assets. Reservoir is a permissionless protocol on Ethereum with native integration on top-tier networks, offering users a widely accessible next-gen stablecoin, **rUSD**, a liquid yielding asset, **srUSD**, a term based yielding asset, **trUSD,** and permissionless **lending markets**. The protocol is backed by multiple digital and real world assets - providing the most scalable stablecoin through DeFi applications and real world asset integrations. Bull market or bear market, Reservoir can offer better and consistent yields than other stablecoin protocols. Relative to peers, the underlying assets powering Reservoir products are less volatile, of higher quality, and offer greater diversification.
{% hint style="info" %} Official Reservoir Links * Website:[ ](https://www.reservoir.xyz/) * Twitter: * Discord: * Blog: {% endhint %} # The Next-Gen Stablecoin As with all major technological innovations, the first iteration of stablecoins, also known as Stablecoins 1.0, have proven to have several limitations that have impaired their usefulness and utility. These stablecoins weren't designed to scale with RWA, be easily integrated and used across DeFi protocols, and return value back to their holders. Common challenges with current stablecoin designs are: * Centralized stablecoins such as USDC and USDT serve as a medium of exchange backed by treasuries, but their regulatory framework only allows them to distribute yield to exchanges. * Legacy decentralized stablecoin protocols have significant tech and governance debt as they were built on mechanisms to interact with digital assets. * New yield bearing stablecoins are all single asset backed, which means greater risk, capped supply, and lower yield opportunities. * Inefficient DAO governance introduces political inefficiencies, which impact the ability to make decisions efficiently and effectively and nurture protocol growth. * Previously collapsed "algorithmic" stablecoins hid de-peg risk and promoted "risk-free return." That's where Reservoir's rUSD stablecoin comes in - a censorship-resistant and transferable stablecoin that was constructed to integrate with multi-collateral asset adapters and be used across DeFi native applications. Reservoir's design enables an overcollateralized, transparent onchain balance sheet verifiable by all users. ### *The Stablecoin Pentalemma*
Since the rise of Tether’s USDT in 2015, market participants and stablecoin issuers have been attempting to solve the stablecoin trilemma. While the "perfect" stablecoin is decentralized, stable, and capital efficient, a trade-off exists between varying degrees of decentralization, stability, and capital efficiency. However, as the stablecoin industry has evolved over the years and innovation in various pockets of crypto has ramped up, it has become increasingly more obvious that the stablecoin trilemma won't solve the true issues at hand. At least not for the use cases of tomorrow. As we see it, stablecoins must be scalable and have real-world utility to remain competitive and relevant. The challenge in creating a stablecoin that is decentralized, stable, capital efficient, scalable, and has utility - or what we call "The Stablecoin Pentalemma.” Unlike Stablecoins 1.0, next gen stablecoins must be scaleable to meet market demands; currently, the demand for stablecoins is greater than the supply of high-quality native digital assets - stablecoins should be able to be used not only within the confines of the speculative crypto market, but also in the outside world. But while a stablecoin must be able to fill the needs of market participants as industries evolve and adoption grows, stablecoins will also need to incorporate native digital assets and onchain real world assets (RWA) to be scalable. The stablecoins of tomorrow must have real utility. By utility, we mean that stablecoins can seamlessly move from one blockchain to another to be used in various decentralized applications. Such is the case not just because it has become increasingly more apparent with time that stablecoins are needed in decentralized finance, NFTs, gaming, and other cryptoasset sectors, but also because the future of crypto is unanimously multi-chain. Although the current stablecoin market predominately consists of first gen stablecoins, a continuation of the current trend indicates that the most successful stablecoins in the years ahead will undoubtedly be next gen stablecoins that address the aforementioned pentalemma. That's why since day 1, Reservoir has been crafted and created to be sufficiently decentralized, stable, capital efficient, scalable, and possess the right utility. # Products Overview Reservoir offers 4 core primitives to drive demand for rUSD and generate sources of capital for the protocol.
{% content-ref url="/pages/EBtjwmZYGry51mtE3ymu" %} [Stablecoin - rUSD](/products/stablecoin-rusd) {% endcontent-ref %} {% content-ref url="/pages/Ln6sGfbsumkM4ljmiOAu" %} [Savings - srUSD & wsrUSD](/products/savings-srusd-and-wsrusd) {% endcontent-ref %} {% content-ref url="/pages/4oT9XCijNH9GocSor6w9" %} [Term - trUSD (Rolling Bond)](/products/term-trusd-rolling-bond) {% endcontent-ref %} {% content-ref url="/pages/kkTAiQVlqHVGsuvQdkFP" %} [Lending Market](/products/lending-market) {% endcontent-ref %} # Stablecoin - rUSD Reservoir’s stablecoin, **rUSD** is available to non-U.S. users and users in non-sanctioned countries. **rUSD** is built to be extremely scalable and efficient, paving the way for increased utility and cross chain use cases. Key features: * ERC-20 dollar-denominated stablecoin * Backed by a balance sheet of both real world and digital assets * rUSD can be minted, redeemed, and borrowed at any time * Mintable and redeemable on a 1:1 basis for USDC, USDT, and USD1 # Savings - srUSD & wsrUSD Reservoir's yield bearing token, **srUSD & wsrUSD** are available to non-U.S. users and users in non-sanctioned countries. **srUSD** accrues interest daily and users can mint and/or redeem at any time. **wsrUSD** accrues interest each block and users can mint and/or redeem at any time. The interest rate for **srUSD** and **wsrUSD** will be the same and will be actively maintained by governance and set based on the state of the protocol balance sheet. Key features: * Reservoir’s yield bearing token minted via rUSD * Liquid savings product with no lock-up​ * Redemptions will be fulfilled immediately when the PSM has available liquidity * srUSD carries a micro burn fee that represents one day's worth of interest on the principal position * wsrUSD carries no fees # srUSD & wsrUSD Calculations ## srUSD Calculations ### Floating Rate srUSD operates on a cumulative compounding rate, which steadily increases it's price in rUSD. The price can never go below 1, but it increases at different rates as the interest rate on srUSD is updated by governance. Starting at an initial time, the cumulative compounded value of 1 srUSD is: $$ (1 + r\_{1})^{n\_{1}} (1 + r\_{2})^{n\_{2}} . . . (1 + r\_{k})^{n\_{k}} $$ Where the $$n\_{i}$$s, are the time intervals between changes in the rate. ### APY Calculation srUSD APY is calculated using the 'currentRate' in the Savings module and compounding it for 365 days. Using an example if the current APY is 13% \= POW (1 + **13%**, 1 / 365) - 1 Output of this formula = 334898895
## wsrUSD Calculations ### APY Calculation wsrUSD APY is calculated using the 'currentRate' in the contract address and compounding it for 31536000. This is the number of seconds in a year. Using an example if the current APY is 13% \= POW (1 + **13%**, 1 / 31536000) - 1 Out of this formula = 3875495702132530000
# Term - trUSD (Rolling Bond) trUSD is Reservoir Protocol's term-based yield-bearing token, implemented as the RollingBond smart contract. > **tl;dr:** Deposit rUSD → receive trUSD shares that accrue yield continuously → choose to redeem after a lock-up period (full yield, no fee) or redeem instantly at any time (immediate, with a small fee). #### Where trUSD Fits in the Reservoir Ecosystem Reservoir's four core primitives each serve a distinct role: ``` ┌────────────────────────────────────────────────────────────────┐ │ Reservoir Protocol │ │ │ │ ┌──────────┐ ┌──────────┐ ┌──────────┐ ┌────────────┐ │ │ │ rUSD │ │ wsrUSD │ │ trUSD │ │ Lending │ │ │ │ │ │ │ │ │ │ Market │ │ │ │ Base │ │ Liquid │ │ Term │ │ │ │ │ │ Stable- │→ │ Savings │ │ Rolling │ │ SteakrUSD │ │ │ │ coin │ │ Variable │ │ Bond │ │ (Morpho) │ │ │ │ │ │ Yield │ │ Higher │ │ │ │ │ │ 1:1 USDC │ │ No lock │ │ Yield + │ │ Borrow / │ │ │ │ │ │ │ │ Lock-up │ │ Loop │ │ │ └──────────┘ └──────────┘ └──────────┘ └────────────┘ │ └────────────────────────────────────────────────────────────────┘ ``` trUSD targets users who want **higher yield** than the liquid srUSD rate and are willing to accept a time commitment. Multiple deployments exist with different lock-up durations, giving users a spectrum of term/yield trade-offs. *** #### The Rolling Bond Concept Traditional term bonds have a fixed maturity date. When the bond matures, users must redeem and re-issue — creating friction and "cliff" events that disrupt yield continuity. **RollingBond eliminates maturity dates entirely:** | Traditional Term Bond | RollingBond (trUSD) | | ------------------------------ | ------------------------------------------------ | | Fixed maturity date | No maturity — yield accrues perpetually | | Must re-issue periodically | Deposit once, earn indefinitely | | Yield paid at maturity | Yield accrues continuously, second by second | | Instant redemption at maturity | Redemption requires lock-up (or fee for instant) | | Binary: locked OR redeemed | Dual path: standard (lock-up) OR early (fee) | *** #### Product Variants A separate RollingBond contract is deployed for each term duration. Each instance is independently configured with its own lock-up period, yield rate, and deposit cap. | Product | Lock-up Period | Best For | | ------------ | -------------- | ------------------------------------------------------ | | **trUSD-1M** | 30 days | Short-term yield seekers wanting monthly liquidity | | **trUSD-3M** | 90 days | Medium-term holders optimizing yield/liquidity | | **trUSD-6M** | 180 days | Capital allocators comfortable with semi-annual cycles | | **trUSD-1Y** | 365 days | Long-term DeFi participants maximizing yield | > **Note:** All variants share the same contract code (`RollingBond.sol`) with different constructor parameters. The lock-up period and redemption window are set at deployment and cannot be changed — there are no setter functions for these parameters. They are fixed commitments built into the contract at construction time. *** #### System Architecture **Contract Inheritance** ``` RollingBond ├── AccessControl (OpenZeppelin) — Role-based permissions ├── ERC20 (OpenZeppelin) — trUSD share token ├── ERC4626 (OpenZeppelin) — Standard vault interface └── ReentrancyGuard (OpenZeppelin) — Reentrancy protection ``` **Full System Diagram** ``` ┌─────────────────────────────────┐ │ Access Control │ │ │ │ DEFAULT_ADMIN ─────────────┐ │ │ (multisig) grants roles │ │ │ ▼ │ │ MANAGER ───────────────────────────► setRate() │ (multisig) │ setCap() └─────────────────────────────────┘ setEarlyRedemptionFee() ┌───────────────────────────────────────────────────────────────────────┐ │ USER ACTIONS │ │ │ │ deposit(assets) requestRedemption(shares) │ │ ───────────── ───────────────────────── │ │ Burn rUSD from user Lock shares in vault │ │ Mint trUSD shares Record unlockTime │ │ to receiver Yield continues to accrue │ │ │ │ │ │ │ │ [wait lock-up period] │ │ │ │ [yield accrues until unlockTime] │ │ │ │ │ │ │ ▼ │ │ │ completeRedemption(receiver) │ │ │ ───────────────────────────── │ │ │ Must be within redemption window │ │ │ Burn locked shares │ │ │ Mint rUSD to receiver │ │ │ (payout = value at unlockTime) │ │ │ │ │ │ redeemEarly(shares, receiver, minOut) │ │ │ ───────────────────────────────────── │ │ │ No waiting required │ │ │ Burn shares immediately │ │ │ Mint rUSD minus early fee to receiver │ │ │ │ └─────────┼─────────────────────────────────────────────────────────────┘ │ ▼ ┌─────────────────────────────────────────────────────────────────┐ │ RollingBond (ERC4626) │ │ │ │ cumulativeRateFactor ─── Tracks total yield growth │ │ (starts at 1.0, only ever increases) │ │ │ │ rateHistory[] ─── Records each rate-change interval │ │ (used to reconstruct the factor at any past timestamp) │ │ │ │ convertToAssets(shares) = shares × cumulativeRateFactor │ │ convertToShares(assets) = assets ÷ cumulativeRateFactor │ │ │ │ totalSupply() = total trUSD shares outstanding │ │ totalAssets() = totalSupply × cumulativeRateFactor │ └──────────────────────────────┬──────────────────────────────────┘ │ ▼ ┌─────────────────────────────────────────────────────────────────┐ │ rUSD (IStablecoin) │ │ │ │ burnFrom(user, amount) ← called on deposit │ │ mint(receiver, amount) ← called on redemption │ │ │ │ RollingBond must hold MINTER role on asset contract │ └─────────────────────────────────────────────────────────────────┘ ``` **Key Design Choice: No Token Custody** The vault **never holds rUSD**. On deposit, rUSD is burned from the user. On redemption, new rUSD is minted to the receiver. This means: * `totalAssets()` is a **virtual** accounting figure derived from shares × yield factor * The protocol's actual rUSD supply is implicitly backed by the Reservoir balance sheet * There is no "vault balance" that can be drained — value is tracked purely via share accounting *** #### Yield Accrual Mechanics **The Cumulative Rate Factor** Yield in RollingBond is not distributed as tokens. Instead, a single global variable — `cumulativeRateFactor` — tracks how much 1 share is worth in rUSD terms. It starts at `1.0` (represented as `1e27` in RAY precision) and only ever increases. ``` cumulativeRateFactor over time (at 10% APY example): Day 0: 1.000000 (1:1, deposit 100 rUSD → 100 trUSD shares) Day 30: 1.008214 (100 shares now worth 100.82 rUSD) Day 90: 1.024684 (100 shares now worth 102.47 rUSD) Day 180: 1.049964 (100 shares now worth 104.99 rUSD) Day 365: 1.100000 (100 shares now worth 110.00 rUSD) ``` **No additional shares are ever minted for yield.** Share count stays constant; purchasing power increases. **Continuous Compounding Formula** The factor is updated using a **4-term binomial expansion** approximation of per-second discrete compounding — `(1 + r)^t` — truncated to its first four terms: ``` (1 + r)^t ≈ 1 + t·r + t(t-1)/2 · r² + t(t-1)(t-2)/6 · r³ ``` Where: * `r` = per-second rate (in RAY format, i.e., × 10²⁷) * `t` = seconds elapsed since last update For practical per-second rates at any realistic time period, this binomial approximation is numerically indistinguishable from continuous compounding (`e^(r·t)`) and is significantly more gas-efficient than an exact power function. The factor is applied **lazily** — it is only computed when a state-changing operation occurs (deposit, request, complete, cancel, early redeem) or when view functions are called. **Rate History** Every time the MANAGER calls `setRate()`, a new entry is appended to the `rateHistory` array. This records the exact cumulative factor and timestamp when each rate became active. The `_getFactorAt(timestamp)` function walks this history to reconstruct the exact cumulative factor at any arbitrary past timestamp — enabling precise payout calculations even when the yield rate changed one or more times during a user's lock-up period. **RAY Precision** All rates and factors use **RAY precision (1e27)** — 27 decimal places — to prevent rounding loss during compounding: ```solidity uint256 public constant RAY = 1e27; // Share → Asset conversion: assets = mulDiv(shares, cumulativeRateFactor, RAY) // Asset → Share conversion: shares = mulDiv(assets, RAY, cumulativeRateFactor) ``` **Common Rates Reference** | Target APY | Per-Second Rate (RAY format) | Notes | | ---------- | ---------------------------- | ----------------------------------------------- | | 5% | `1,546,000,000,000,000,000` | Conservative | | 10% | `3,020,000,000,000,000,000` | Moderate | | 17% | `4,976,000,000,000,000,000` | | | 50% | `12,850,000,000,000,000,000` | | | 100% | `21,960,000,000,000,000,000` | | | 1000% | `76,040,000,000,000,000,000` | Max practical (\~857% actual due to truncation) | > **Compounding Approximation Precision**: At very high rates (>1000% APY target), the 4-term binomial truncation underestimates the true result. At a 1000% APY target, actual realized yield is approximately 857%. This is documented and acceptable for the use case. Maximum allowed rate (`MAX_RATE = 1e21`) caps at approximately 3,150% APY. *** #### User Flows **1. Deposit Flow** Depositing rUSD mints trUSD shares at the **current share price** (i.e., the current `cumulativeRateFactor`). ``` User holds rUSD │ │ 1. user.approve(rollingBond, amount) ▼ RollingBond.deposit(amount, receiver) │ │ 2. Update cumulativeRateFactor to now │ 3. Calculate shares = amount ÷ currentFactor │ 4. IStablecoin(rUSD).burnFrom(caller, amount) ← rUSD destroyed │ 5. _mint(receiver, shares) ← trUSD created ▼ Receiver now holds trUSD shares (value accrues second-by-second going forward) ``` **Example:** * User deposits 1,000 rUSD when `cumulativeRateFactor = 1.05` (5% has accrued since deploy) * Shares minted = `1,000 ÷ 1.05 = 952.38 trUSD` * After another 30 days at 10% APY: shares worth `952.38 × 1.0582 = ~1,008.40 rUSD` *** **2. Standard Redemption Flow (Lock-up Path)** The standard path gives the **value of shares at the moment the lock-up ends** — with no fee — after waiting the lock-up period. Yield **continues to accrue** throughout the entire lock-up duration and stops only at `unlockTime`. ``` Phase 1: REQUEST ───────────────── User calls requestRedemption(shares) │ ├── Checks: no existing active request, balance ≥ shares ├── Calculates unlockTime = block.timestamp + lockupPeriod ├── Transfers shares to vault (locked) ← SHARES LOCKED HERE └── Emits RedemptionRequested event Phase 2: WAIT (lock-up period) ─────────────────────────────── [30 / 90 / 180 / 365 days pass] The global cumulativeRateFactor continues to grow for ALL depositors, including this user's locked shares. Yield accrues right up to unlockTime. Phase 3: COMPLETE (within redemption window) ──────────────────────────────────────────── User calls completeRedemption(receiver) │ ├── Checks: block.timestamp ≥ unlockTime ├── Checks: block.timestamp ≤ unlockTime + REDEMPTION_WINDOW ├── Calculates factorAtUnlock = _getFactorAt(unlockTime) ← YIELD FROZEN AT UNLOCK TIME ├── Calculates assets = shares × factorAtUnlock ÷ RAY ├── Burns locked shares from vault ├── IStablecoin(rUSD).mint(receiver, assets) ← rUSD created └── Emits RedemptionCompleted event ``` **Timeline example (trUSD-1M at 10% APY):** ``` Day 0 ──────────────────────────────────────────── Deposit $1,000 Receive 1,000 trUSD Day 45 ──────────────────────────────────────────── requestRedemption(1000) Current value: $1,012.36 Lock-up starts (30 days) Shares transferred to vault Yield continues to accrue Day 45-75 [Yield accrues continuously for all holders, including locked shares] Day 75 ──────────────────────────────────────────── Lock-up ends, window opens Value at unlock: $1,020.82 YIELD FROZEN AT $1,020.82 Window: Day 75 → Day 82 (7 days) Day 78 ──────────────────────────────────────────── completeRedemption(wallet) Receive: $1,020.82 (factor captured at Day 75 unlock time) Day 83+ ──────────────────────────────────────────── Window expired Must submit new requestRedemption ``` > **Yield Freezes at Unlock Time**: The payout is calculated using the cumulative rate factor at `unlockTime` — the moment the lock-up *ends*. Yield continues to accrue normally throughout the lock-up period. Once `unlockTime` is reached, the value is frozen and no additional yield accrues during the redemption window. Users who complete their redemption on day 75 or day 82 receive the same amount — the value the shares had exactly at `unlockTime`. > **Redemption Window Expiry**: If a user fails to call `completeRedemption` within the redemption window, the request expires. The locked shares are automatically returned when the user calls `requestRedemption` or `redeemEarly` again (auto-clear). No manual `cancelRedemption` is needed for expired requests. *** **3. Early Redemption Flow (Instant Path)** Users who need immediate liquidity can redeem at any time by paying the `earlyRedemptionFee` (configurable by MANAGER, default 5%). ``` User calls redeemEarly(shares, receiver, minAssetsOut) │ ├── Checks: no active pending request (or auto-clears if expired) ├── Checks: balance ≥ shares ├── Updates cumulativeRateFactor to now ├── Calculates assetsBeforeFee = shares × currentFactor ÷ RAY ├── Calculates fee = assetsBeforeFee × earlyRedemptionFee ÷ RAY ├── Calculates assets = assetsBeforeFee - fee ├── Checks: assets ≥ minAssetsOut (slippage protection) ├── Burns shares from user ├── IStablecoin(rUSD).mint(receiver, assets) └── Emits EarlyRedemption event ``` **Example (at 5% fee, 10% APY, Day 45):** ``` Deposit Day 0: 1,000 rUSD → 1,000 trUSD shares Day 45 early redeem: Current value: $1,012.36 Fee (5%): - $50.62 ───────────────────────── Received: $961.74 (immediate, no waiting) ``` > **minAssetsOut Slippage Protection**: Pass `minAssetsOut = 0` to disable slippage protection, or pass a calculated minimum to guard against fee changes or rate updates between transaction submission and execution. > **Active Request Restriction**: If a user has an active (non-expired) redemption request, they cannot call `redeemEarly` — even for shares not included in the request. They must cancel the pending request first. This is by design; expired requests are auto-cleared automatically. *** **4. Cancel Redemption** A user can cancel a pending redemption request at any time — during the lock-up period **or** during the redemption window. ``` User calls cancelRedemption() │ ├── Checks: pending request exists ├── Deletes redemptionRequests[msg.sender] ├── Transfers locked shares back to user └── Emits RedemptionCancelled event Shares return to user's wallet and resume yield accrual from the global factor. ``` > After cancellation, shares resume accruing yield normally. The user can then re-request redemption at a higher share value. *** **5. Redemption State Machine** ``` ┌──────────┐ deposit() │ │ ────────────────►│ ACTIVE │◄──────────────────────────────┐ │ (holding)│ │ └────┬─────┘ │ │ │ requestRedemption(shares) │ │ │ ▼ │ ┌──────────┐ │ │ LOCKED │ [yield accrues → unlockTime] │ │(in vault)│ │ └────┬─────┘ │ │ │ ┌─────────┴─────────┐ │ │ │ │ cancelRedemption() [lockupPeriod elapses] │ │ │ │ │ ┌────▼──────┐ │ │ │ WINDOW │ [value frozen at │ │ │ OPEN │ unlockTime] │ │ └────┬──────┘ │ │ │ │ │ ┌───────────┴──────────┐ │ │ │ │ │ │ completeRedemption() [window expires] │ │ │ │ │ │ ▼ │ │ │ ┌─────────┐ AUTO-CLEAR │ │ │ REDEEMED│ on next call │ │ │ (done) │ │ │ │ └─────────┘ └────────────────┘ │ └─────────────────────────────────────────────► back to ACTIVE ``` *** #### Smart Contract Interface **Constructor Parameters** ```solidity constructor( address admin, // DEFAULT_ADMIN_ROLE holder (use multisig) string memory name, // Token name, e.g. "trUSD-1M" string memory symbol, // Token symbol, e.g. "trUSD-1M" IERC20Metadata asset, // rUSD contract address uint256 _lockupPeriod, // Lock-up in seconds (max: 365 days) uint256 _redemptionWindow, // Window in seconds (production: 7 days = 604800) uint256 initialRate, // Per-second yield rate in RAY format uint256 initialEarlyRedemptionFee // Fee in RAY (e.g. 0.05e27 = 5%) ) ``` **Public User Functions** | Function | Description | | --------------------------------------------------------------------- | ---------------------------------------------- | | `deposit(uint256 assets, address receiver)` | Deposit rUSD, receive trUSD shares | | `requestRedemption(uint256 shares)` | Start lock-up countdown; locks shares in vault | | `completeRedemption(address receiver)` | Complete after lock-up, within window | | `cancelRedemption()` | Cancel pending request, unlock shares | | `redeemEarly(uint256 shares, address receiver, uint256 minAssetsOut)` | Instant redemption with fee | **View / Preview Functions** | Function | Returns | | ----------------------------------------- | --------------------------------------------------------- | | `convertToAssets(uint256 shares)` | Current rUSD value of shares | | `convertToShares(uint256 assets)` | Shares received for given rUSD | | `totalAssets()` | Total notional rUSD in vault (see note below) | | `getRedemptionRequest(address user)` | `(shares, requestTime, unlockTime, windowEnd, canRedeem)` | | `previewCompleteRedemption(address user)` | Assets at factor as of min(now, unlockTime) | | `previewRedeemEarly(uint256 shares)` | `(assetsAfterFee, feeAmount)` at current factor | | `previewRedeem(uint256 shares)` | Assets at current factor (not frozen) | | `apy()` | Current annual yield in RAY format | | `getCurrentCumulativeFactor()` | Current live cumulative factor | | `rateHistoryLength()` | Number of rate-change intervals recorded | | `maxDeposit(address)` | Remaining capacity under cap (0 = unlimited) | > **`previewRedeem` vs. `previewCompleteRedemption`**: These return **different values** by design. `previewRedeem(shares)` answers *"what is the current asset value of these shares?"* (current factor, always growing). `previewCompleteRedemption(user)` answers *"what will my existing pending request pay out?"* — it uses `_getFactorAt(min(now, unlockTime))`: growing during the lock-up, then frozen at `unlockTime` once the window opens. DeFi integrators using the ERC4626 interface will see `previewRedeem` — the current-factor value. > **`totalAssets()` Note**: This function values all outstanding shares at the current live rate, including shares locked in active redemption requests. Locked shares will actually be paid out at their `unlockTime` factor (which is lower than the current factor if the rate has risen since their lock started). `totalAssets()` therefore slightly overestimates actual vault obligations. This is accepted behavior — it is a virtual accounting figure used for ERC4626 compatibility and cap enforcement. **Manager Functions (MANAGER role required)** | Function | Description | | ------------------------------------------ | ------------------------------------------------------------------------------- | | `setRate(uint256 newRate)` | Update per-second yield rate (≤ MAX\_RATE) | | `setCap(uint256 newCap)` | Set maximum total assets (0 = unlimited) | | `setEarlyRedemptionFee(uint256 newFee)` | Set early redemption fee (0–100%, in RAY) | | `recover(address token, address receiver)` | Rescue accidentally sent non-rUSD tokens (transfers full balance of that token) | **Events** ```solidity event Deposit(address indexed caller, address indexed owner, uint256 assets, uint256 shares); event RedemptionRequested(address indexed user, uint256 shares, uint256 requestTime, uint256 unlockTime); event RedemptionCompleted(address indexed user, address indexed receiver, uint256 shares, uint256 assets); event RedemptionCancelled(address indexed user, uint256 shares); event EarlyRedemption(address indexed user, address indexed receiver, uint256 shares, uint256 assets, uint256 fee); event RateUpdated(uint256 oldRate, uint256 newRate, uint256 timestamp); event CapUpdated(uint256 oldCap, uint256 newCap); event EarlyRedemptionFeeUpdated(uint256 oldFee, uint256 newFee); ``` *** #### Access Control RollingBond uses OpenZeppelin's `AccessControl` with two roles: ``` DEFAULT_ADMIN_ROLE (bytes32(0)) ├── Granted to: admin address in constructor ├── Can: grant and revoke any role (including MANAGER) └── Cannot: directly set rates, caps, fees, or access user funds MANAGER (keccak256(abi.encode("rollingbond.manager"))) ├── Can: setRate, setCap, setEarlyRedemptionFee, recover └── Cannot: mint shares, modify pending redemption requests, transfer user funds ``` # Lending Market Reservoir’s Lending Market on Morpho powered by Steakhouse will enable users to mint rUSD on a variable or fixed rate basis against a variety of crypto assets. The market can be viewed [here](https://app.morpho.org/vault?vault=0xBeEf11eCb698f4B5378685C05A210bdF71093521\&network=mainnet). ### Overview: SteakrUSD is similar to how Spark works for Maker. The protocol mints rUSD and supplies it to the morpho SteakrUSD market or in some cases users supply rUSD into the SteakrUSD market. \ A different set of users (loopers) then come in with USDC to mint srUSD, deposit it as collateral in SteakrUSD and then borrow rUSD (now putting it into circulation). When the rUSD is borrowed they can do whatever they want with the rUSD although many choose to mint more srUSD and when they do that the rUSD they borrowed itself is burnt). SteakrUSD is on the asset side of the protoocl balance sheet because by deafuly the protocol has rUSD deposited there that it earns yield on. In order to mint srUSD, a user needs to burn a rUSD. Users come in and mint srUSD (by coming in with usdc, minting rUSD, and then burning the rUSD for srUSD). Then the user takes srUSD to Morpho or Dolomite or Euler and uses it as collateral. In the steakrUSD market in particular, the Reservoir Protocol lends rUSD against srUSD as collateral (some Reservoir PTs from Pendle are also in the market). This enables users to borrow rUSD at a very efficient and stable rate. This rUSD that is borrowed can be redeemed by the PSM for USDC or it can be burned to mint srUSD to continue looping. All rUSD is fungible and it does not matter if it’s minted from USDC or borrowed from a lending market. # Proof of Reserves Reservoir’s strategy is to generate a robust balance sheet for the protocol enabling rUSD to be the most scalable and used stablecoin in DeFi. The real-time balance sheet ensures the protocol solvency and establishes trust in that users can rely on the capital being available for redemptions and growth. Yield is generated through the onchain allocation of the reservoir balance sheet into real world assets, crypto backed lending market, and other DeFi protocols. The yield is then distributed to srUSD, wsrUSD and trUSD holders creating a healthy flow of funds. ### Assets The asset selection and growth strategy at launch is foundational to the protocol’s success. Reservoir will partner with other protocols and firms to facilitate asset selection, growth, and risk management. With a focus on several categories of assets: DeFi yield, market making, money markets, crypto backed loans, and real world assets. #### **Digital Assets & DeFi Yield** Strategies Reservoir will integrate with approved DeFi protocols to provide a diverse set of on-chain yield. These will included liquidity pools, money markets, and yield protocols. #### **Real World Assets (RWA)** Reservoir will integrate with approved RWA curators to source assets based on demand from Reservoir governance. Governance will perform due diligence, onboard, and manage RWA collateral in an effective and efficient manner. RWA collateral will be allocated across a series of sub-categories of assets with various durations and exposure. The current assets on the protocol balance sheet can be viewed at [Asset Adapters](/protocol-architecture/asset-adapters) ### Liabilities #### **rUSD - Stablecoin** Reservoir mints rUSD to fund protocol assets. Users will be able to receive rUSD by exchanging USDC (and in future other approved stable assets) to gain access to protocol yield through trUSD or srUSD. Redemption of rUSD from the protocol into approved stable asset collateral will also be available on demand via the [peg stability module (PSM).](/protocol-architecture/peg-stability-module) #### **srUSD - Savings** Users can mint srUSD with rUSD to earn yield from the protocol, which will be determined by Reservoir governance. Users can redeem srUSD for rUSD anytime up to the amount of liquidity available in the PSM. #### **wsrUSD - Savings** Users can mint wsrUSD with rUSD to earn yield from the protocol, which will be determined by Reservoir governance. Users can redeem wsrUSD for rUSD anytime up to the amount of liquidity available in the PSM. #### **trUSD - Term** Users can mint trUSD with rUSD to earn yield from the protocol, which will be determined by Reservoir governance. Users can mint trUSD at different fixed term maturities and receive quarterly coupons. Users will redeem trUSD for rUSD once the maturity is complete. ### Equity This portion of Reservoir’s balance sheet is the most secure capital owned by the protocol, also known as the "Protocol Reserve." Reservoir will launch with an initial protocol reserve. Future equity will be equal to the starting equity plus any retained earnings, protocol fees, net interest income, liquidation fees, governance token sales, etc. The equity will be under the control of governance token holders. Reservoir will launch with a large capital commitment from its initial contributors which will form the initial reserve. This will be funded by a strategic distribution of the governance token. Establishing this founding capital base will allow Reservoir to scale quickly. The initial strategic contributors will be required to participate and remain active in the governance, growth, and development of Reservoir. # DAM The DAM TGE was on August 18th 2025. {% hint style="info" %} **Official links** DAM Staking: {% endhint %} #### FAQs: Q: Can I stake DAM at any time? A: Yes! Staking DAM will earn additional rewards. Q: Can I unstake at any time? A: Yes with a 14 day unbonding period but note that if you unbond while you have a pending unbond it resets the unbond clock back to 14 days. # Architecture Overview Transactions that increase leverage in the system have to pass through the credit enforcer. The diagram below shows that the protocol's dependencies require that the credit enforcer check the asset, equity, and liquidity ratios each time an action is taken. This design ensures protocol solvency and will revert if proven otherwise.
# Credit Enforcer Reservoir’s Credit Enforcer is a smart contract that has wide powers to enforce the protocol’s financial covenants in terms of liquidity and solvency. This means that sufficient liquidity for a 1:1 conversion of **rUSD** to other supported stable assets is automatically enforced, while also deploying the remainder of protocol controlled assets into automated strategies for yield to be passed on to **srUSD** and **trUSD** holders. In order to ensure solvency of the protocol, any action that is taken to modify asset allocations can not break the invariants listed below. Otherwise, the transaction will revert.
Liquidity RatioAsset RatioEquity Ratio
DescriptionEnsure timely redemption of rUSD.Ensure there is enough assets for creditors to be repaid.Ensure there is enough capital.
CalculationThe ratio of liquid assets to rUSD that can be redeemed within a relative time span (approximately 30 days).Total assets divided by total liabilities.Equity divided by capital at risk.
ComparisonLiquidity Coverage Ratio with 100% net cash outflow.Basel III Leverage Ratio with the asset ratio inverted.Leverage Ratio of Basel III but inverted.
These constraints are set to be immutable features of the smart contracts in order to provide confidence to the user base. The capital at risk can be thought of as a percentage weight of an asset going to zero. Assets and liabilities are regarded as long or short term (illiquide vs liquid) based on if they would take longer then a set duration to liquidate. So for a duration of 30 days, a **trUSD** token maturing later than 30 days from the present would be regarded as long term (illiquid). Likewise, for assets where a fund of treasury bills would be regarded as short term (liquid). The balance of **rUSD** in the Credit Enforcer is always considered short term (liquid), because it can always be redeemed for USDC in the PSM. The following is an illustrative example of the change in the constraining ratios of the protocol as different tokens are minted and redeemed (equity is calculates as assets minus liabilities). Governance will establish the amount of days that is considered to be short term vs long term (30 days is used in the example below). | | Short Term | Long Term | | ----------- | -------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------- | | Assets | Assets that can be redeemed to USDC in less than 30 days: Real World Asset Stocks, Real World Asset Bonds, DeFi lending. | Assets that can be redeemed to USDC in more than 30 days: RWA private credit, RWA revenue based financing. | | Liabilities | Redeemable for USDC within the defined duration (\~30 days): **rUSD**, **srUSD**, **wsrUSD** **trUSD** maturing near term. | Redeemable for USDC within the defined duration (greater than \~30 days): **trUSD** not maturing near term. | Equity = Total Assets - Total Liabilities Assume the PSM is holding 4 M USDC and 2 M **rUSD** outstanding with no issued **trUSD** or **srUSD** or **wsrUSD**. With capital at risk value for USDC of 0.001 : * Liquidity Ratio: 200% * Asset Ratio: 200% * Equity Ratio: 2 M / (0.001 \* 4 M) = 50,000% Now lets assume 1 M **rUSD** is converted into **trUSD** that will mature in a year, with the discount of an 8% yield. The net liabilities would rise by that amount, but the liquid liability (maturing in \~30 days) would decrease by 1 M **rUSD**, which means the new ratios would look like: * Liquidity Ratio: \~400% * Asset Ratio: \~192% * Equity Ratio: \~48,000% Each of these ratios must remain above a set minimum by governance. Usually the minimum would be \~105%. In the example above a swap of 1 M USDC for 1 M **rUSD** would lower the liquidity ratio to 250%. Note that on the asset side, in the example above only USDC was taken into account, but under normal operations USDC will be held in RWAs as well as onchain investments. That capital moved through the Asset Adapters will contribute part of the amount in the total asset value in the calculations above. # Peg Stability Module The Peg Stability Modules (PSMs) are efficiently managed via the Credit Enforcer system, which auto balances the PSM to have enough liquidity needed to support demand on the respective chain, but not more than is needed and can be allocated elsewhere. The USDC PSM is automated to maintain a minimum balance of 25 - 50 bps of total assets at all times, automatically refilling every hour. The stablecoin peg is also stabilized via the credit enforcer, which is powered by the proof of reserves. It ensures that there is always enough USDC and USDT to redeem liquid rUSD. This will increase trust in the peg as users have a fully transparent view into health of the balance sheet. Another important aspect to the peg is the assets that collateralize the stablecoin protocol. All existing decentralized stablecoin protocols today are only able to use liquid DeFi assets. This presents peg risk*,* as large market participants can execute profitable strategies to push the price of digital assets down on the market and create insolvency risk. RWA collateral provides a significant differentiating factor not only in the form of higher yields, but also in how uncorrelated and more stable it is to the digital asset market. # Term Issuer Reservoir's Term Issuer enables users to exchange rUSD for fixed-term yield-bearing tokens trUSD of differing maturities. Governance will set debt caps and interest rates for the term-based token at different maturity dates throughout the year. The purchase will be discounted by the yield, and the user will be able to redeem 1:1 for rUSD at the maturity date. When issued, the user burns their rUSD and mints trUSD at the current discounted price and can expect to receive a rUSD balance equivalent to their trUSD balance upon maturity. See the diagram that shows how term-based tokens are made available and their maturity schedule [here](broken://pages/8VsBKKYzmSwMsiKV37zZ). # Savings Module The Reservoir savings product offers users the ability to exchange rUSD for a variable rate yield-bearing token srUSD. Governance will periodically set an interest rate based on market conditions, changing the rate of srUSD's price appreciation in rUSD terms. When issued, the user burns their rUSD and mints srUSD at the current price and can be sure the price will either be the same or higher upon redemption when they burn their srUSD for rUSD. Click [here](/products/savings-srusd-and-wsrusd/srusd-and-wsrusd-calculations) for more information on floating rates for a more detailed calculation of pricing. # Asset Adapters Asset adapters offer a destination for capital within the Reservoir protocol (USDC) to generate yield in both onchain and real world asset opportunities. Once Governance approves the capital allocations and destinations, the stablecoins can be transferred to the underlying smart contracts with a standardized interfaces that report a net asset value, in order to track overall solvency within Reservoir. Whether it's an offchain net asset value, debt token, or LP position fund adapter holdings are in custody of the protocol and thus contribute to the asset side of the balance sheet of the Reservoir protocol. ### Currently integrated asset adapters To view the associated addresses, please visit [here](https://docs.reservoir.xyz/~/changes/6vJBWTZ0UXUua8HqDmKq/security-and-compliance/smart-contract-addresses#asset-adapters). For more details regarding the asset adapters, including live data regarding asset allocation, please visit the [reserves page](https://app.reservoir.xyz/reserves). # Overview The Reservoir Protocol sets several key mechanisms to mitigate the financial risks and to ensure the health and solvency of the protocol. The key metrics are as follows: ### **Liquidity Ratio** $$ \frac{\sum \text{Liquid assets within 30 days}}{\sum \text{rUSD that can be redeemed within 30 days}} $$ * This ratio indicates the ability for the rUSD to be redeemed timely by measuring the liquid assets with 30 days against the maximum amount of rUSD redeemable for 30 days. The ratio is used to manage liquidity risk of the protocol. * The safeguarding threshold for liquidity ratio is set at 105%. As the ratio falls below 105%, the credit enforcer (which is the smart contracts that ensure risk metrics are enforced permissionlessly) will commence sales of assets to increase liquidity. ### **Asset Ratio** $$ \frac{\sum \text{Assets}}{\sum \text{Liabilities}} $$ * The solvency ratio indicates the protocol’s ability to meet its existing liabilities by measuring its total assets against its total liabilities. * The solvency ratio's safeguarding threshold is set at 105%. If the ratio falls below this, the credit enforcer, a key internal mechanism, will step in and sell native tokens to raise cash for the balance sheet's liabilities. ### Equity Ratio $$ \frac{\sum \text{Equity}}{\sum \text{Capital at risk (\*)}} $$ * The capital ratio is used to mitigate capital risk when the protocol takes on too many risky assets, and the capital at hand might not be enough to absorb the losses (if losses happen). * The safeguarding threshold for the equity ratio is set at 105%. As the ratio falls below 105%, the credit enforcer will commence sales of risky assets to reduce the exposure to risky assets on hand. | Metric | Liquidity Ratio | Asset Ratio | Equity Ratio | | --------------------- | ---------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------- | | Measuring/ Indicating | Reservoir Protocol’s ability for rUSD to be redeemed timely | Reservoir Protocol’s ability to meet its liabilities and repay the creditors | Reservoir Protocol’s capital on hand is enough to absorb any losses from the risky assets | | Comparable to | Liquidity Coverage Ratio (LCR) with Reservoir using 100% of net cash outflow | Leverage Ratio (at Basel III standard) with Reservoir inverting the Asset Ratio (i.e. Asset Ratio = 1/(1 - Leverage Ratio) | Common Equity Tier 1 (CET1) capital requirement, which computes Equity / Capital at risk with Reservoir adjusting with Capital ratio = CET1 \* 12.5 | | Threshold | 105% | 105% | 105% | # FAQ **Q: How will rUSD maintain its peg? How will the protocol stay solvent?** A: Reservoir provides a peg stability module that allows anyone to convert rUSD to USDC at parity and at no cost. rUSD issuance will be calibrated to avoid any liquidity crunch scenario. An important aspect of the rUSD peg is the assets that collateralize the stablecoin protocol. With a healthy mix of liquid DeFi assets and RWA collateral, the protocol provides a significant differentiating factor in higher yields and how uncorrelated and more stable it is to the digital asset market. **Q: How does the protocol manage periods of high market volatility?** A: The multicollateral approach to the Reservoir balance sheet creates flexible infrastructure to keep yields at or above market rates. Through lending rate and funding rate exposure, Reservoir is able to capture bull market yields. During bear markets or slow periods, Reservoir is able to obtain exposure to more consistent, risk averse yields such as Treasury bills offchain. **Q: How does the protocol safely store and manage funds?**\ \ A: Reservoir uses Gnosis Safe and institutional MPC wallets to custody, transact, and set parameter changes onchain. **Q: What is the steakRUSD position on the balance sheet?**\ \ A: SteakrUSD is similar to how Spark works for Maker. The protocol mints rUSD and supplies it to the morpho SteakrUSD market or in some cases users supply rUSD into the SteakrUSD market. See the [lending market page](/products/lending-market) for a more detailed explanation. **Q: What are the Pendle rUSD and Pendle wsrUSD positions on the balance sheet?**\ \ A: rUSD and wsrUSD are minted to help bootstrap the Reservoir Pendle LP markets. It is all fully collateralized and doesn’t create a depeg risk. rUSD supply is increased by the protocol balance sheet and is allocated into the two LP markets and burned at the end of the maturity or rolled into the next maturity. All rUSD is redeemable 1:1 for USDC on the balance sheet and the balance sheet is overcollateralized. # Smart Contract Addresses The suite of smart contracts that make up the Reservoir protocol. ### Source ### Core All of the core contracts are deployed on Ethereum
NameAddressSourceAudit
rUSD0x09D4214C03D01F49544C0448DBE3A27f768F2b34LinkLink
srUSD0x738d1115B90efa71AE468F1287fc864775e23a31LinkLink
wsrUSD0xd3fd63209fa2d55b07a0f6db36c2f43900be3094LinkLink
trUSD-300x4E684032B8b066215FAacf883e16c01e456BC4D9LinkLink
trUSD-900x12C69D535605D035FE5EB63Da04FeA0434771c30LinkLink
trUSD-1800x5130Fb9bd3331d1c128a0552463Ce9CB02d70b40LinkLink
DAM0x0FedbA9178b70e8b54e2Af08eBffcf28A1e5A43BLinkLink
DAM Staking0x4be8be2B72638F87c76F738CC1341665ED2F5876LinkLink
Peg Stability Module (USDC)0x4809010926aec940b550D34a46A52739f996D75DLinkLink
Peg Stability Module (USDT)0xeaE91B4C84e1EDfA5d78dcae40962C7655A549B9LinkLink
Peg Stability Module (USD1)0x813b0857e016b7ae5fb57f464dfad8ee7b74232eLinkLink
Saving Module0x5475611Dffb8ef4d697Ae39df9395513b6E947d7LinkLink
Credit Enforcer0x04716DB62C085D9e08050fcF6F7D775A03d07720LinkLink
rUSD Mint Bridge0x6360f43803732Eaeb9F1967b9f74d117E03154b3LinkLink
### Asset Adapters
AssetAddressChain
steakUSDC0x99A95a9E38e927486fC878f41Ff8b118Eb632b10Ethereum
smokeUSDC0x841DB2cA7E8A8C2fb06128e8c58AA162de0CfCbCEthereum
Steakhouse High Yield0xC5deA68CCe26c014BEC516CDA70c107c534a73C4Ethereum
smokeUSDT0x289C204B35859bFb924B9C0759A4FE80f610671c
0xb595ba80d38b8e4c9894a6734a1b9a7b198870a2		Ethereum
steakRUSD0x31Eae643b679A84b37E3d0B4Bd4f5dA90fB04a61Ethereum
Euler & Aave Markets0x3063C5907FAa10c01B242181Aa689bEb23D2BD65Multichain
Morpho & Fluid Markets0x289C204B35859bFb924B9C0759A4FE80f610671cMultichain
Stargate Markets0xE94fc572b5E5Abe38F326F7DeDfe4f0Df9851d2AMultichain
sUSDe & PT sUSDe0x5563CDA70F7aA8b6C00C52CB3B9f0f45831a22b1Ethereum
USDe & PT USDe0x8d3A354f187065e0D4cEcE0C3a5886ac4eBc4903Ethereum
USDS0x0b578e123e3725a15F6FCbd43ADf314EaA667c04Ethereum
Reservoir Pendle LPs0x8Cc5a546408C6cE3C9eeB99788F9EC3b8FA6b9F3Ethereum
Berachain Markets0x0db79c0770E1C647b8Bb76D94C22420fAA7Ac181Berachain
World Chain Markets0x6A506576D9d08e93f1E9051F0A164F67a48DdAF2World Chain
Plasma Markets0x9A319b57B80c50f8B19DB35D3224655F3aDd8E4fPlasma
Solana MarketsFWKPQGz7RtFa5yY4moKJS4x6bhBeAFpqjuNRxLJJ8FonSolana
### OFT Addresses
OFTAddressChain
rUSD OFT Adapter0xf0e9f6d9ba5d1b3f76e0f82f9dcdb9ebeef4b4daEthereum
srUSD OFT Adapter0x316cd39632Cac4F4CdfC21757c4500FE12f64514Ethereum
wsrUSD OFT Adapter0xbb431abd156b960e5b77cc45c75f107e3991258aEthereum
DAM0xf9ca3fe094212ffa705742d3626a8ab96aababf8BNB
rUSD0x09D4214C03D01F49544C0448DBE3A27f768F2b34Berachain
srUSD0x5475611Dffb8ef4d697Ae39df9395513b6E947d7Berachain
wsrUSD0x316cd39632Cac4F4CdfC21757c4500FE12f64514Berachain
rUSD0x09D4214C03D01F49544C0448DBE3A27f768F2b34Base
wsrUSD0x62344be8CA1c339B46274a4017dd87AF436900B1Base
rUSD0x09D4214C03D01F49544C0448DBE3A27f768F2b34Plume
wsrUSD0x0BBcc2C1991d0aF8ec6A5eD922e6f5606923fE15Plume
rUSD0x09D4214C03D01F49544C0448DBE3A27f768F2b34Sonic
wsrUSD0x4809010926aec940b550D34a46A52739f996D75DSonic
rUSD0x09D4214C03D01F49544C0448DBE3A27f768F2b34World Chain
wsrUSD0x4809010926aec940b550D34a46A52739f996D75DWorld Chain
rUSD0x09D4214C03D01F49544C0448DBE3A27f768F2b34Arbitrum
wsrUSD0x4809010926aec940b550D34a46A52739f996D75DArbitrum
rUSD0x09D4214C03D01F49544C0448DBE3A27f768F2b34Sei
wsrUSD0x4809010926aec940b550D34a46A52739f996D75DSei
rUSD0x09D4214C03D01F49544C0448DBE3A27f768F2b34Unichain
wsrUSD0x4809010926aec940b550D34a46A52739f996D75DUnichain
rUSD0x866d66F64FB81461903E1e38d998E747EcF35E78HyperEVM
wsrUSD0x04716DB62C085D9e08050fcF6F7D775A03d07720HyperEVM
rUSD0x09D4214C03D01F49544C0448DBE3A27f768F2b34BNB
wsrUSD0x4809010926aec940b550D34a46A52739f996D75DBNB
rUSD0x09D4214C03D01F49544C0448DBE3A27f768F2b34Avalanche
wsrUSD0x4809010926aec940b550D34a46A52739f996D75DAvalanche
rUSD0x09D4214C03D01F49544C0448DBE3A27f768F2b34Katana
wsrUSD0x4809010926aec940b550D34a46A52739f996D75DKatana
rUSDEjqkht2dyN1BaaEtK92zBKY6S8HbVH8APB5sDK9RmoktSolana
wsrUSD7bxM8cRFZpzonzZtzmrcWHNX1dijrEVU4VkjjtVyBmqESolana
rUSD0x09D4214C03D01F49544C0448DBE3A27f768F2b34Linea
wsrUSD0x4809010926aec940b550D34a46A52739f996D75DLinea
rUSD0x09D4214C03D01F49544C0448DBE3A27f768F2b34Monad
wsrUSD0x4809010926aec940b550D34a46A52739f996D75DMonad
rUSD0x09D4214C03D01F49544C0448DBE3A27f768F2b34Plasma
wsrUSD0x4809010926aec940b550D34a46A52739f996D75DPlasma
rUSD0x09D4214C03D01F49544C0448DBE3A27f768F2b34Megaeth
wsrUSD0x4809010926aec940b550D34a46A52739f996D75DMegaeth
rUSD OFT adapter0xc593478d188259EAF3706B070fB8C17CF00b25b8Tempo
wsrUSD OFT adapter0x31d1a36a59A38c3A72E8D8567f5a98D5C777C98fTempo
rUSD TIP200x20c0000000000000000000007F7ba549dd0251B9Tempo
wsrUSD TIP200x20c000000000000000000000aeED2eC36A54d0e5Tempo
rUSD0x09D4214C03D01F49544C0448DBE3A27f768F2b34XDC
wsrUSD0x4809010926aec940b550D34a46A52739f996D75DXDC
rUSD0x09D4214C03D01F49544C0448DBE3A27f768F2b34Pharos
wsrUSD0x4809010926aec940b550D34a46A52739f996D75DPharos
# Audits The Reservoir protocol has successfully completed four audits by Halborn (a leading security auditing firm). Audit 1: First audit on the entire protocol {% embed url="" %} Audit 2: Second audit on the Morpho lending market integration {% embed url="" %} Audit 3: Third audit on the Layer Zero bridge integration {% embed url="" %} Audit 4: wsrUSD and rebalancer {% embed url="" %} Audit 5: Rebalance Contract {% file src="/files/HYWyuCJWSibJaYfDlOVh" %} # Terms of Service *Last Revised on August 23, 2024* Welcome to the Terms of Service (these “Terms”) for our website-hosted user interface located at reservoir.xyz (the “Interface”), operated by or on behalf of the Reservoir Protocol (the “Protocol,” “we” or “us”). The Interface and any content, tools, documentation, features and functionality offered on or through the Interface are collectively referred to as the “Services”. These Terms govern your access to and use of the Services. Please read these Terms carefully, as they include important information about your legal rights. By accessing and/or using the Services, you are agreeing to these Terms. If you do not understand or agree to these Terms, please do not use the Services. For purposes of these Terms, “you” and “your” means you as the user of the Services. If you use the Services on behalf of a company or other entity then “you” includes you and that entity, and you represent and warrant that (a) you are an authorized representative of the entity with the authority to bind the entity to these Terms, and (b) you agree to these Terms on the entity’s behalf. SECTION 7 CONTAINS AN ARBITRATION CLAUSE AND CLASS ACTION WAIVER. BY AGREEING TO THESE TERMS, YOU AGREE (A) TO RESOLVE ALL DISPUTES (WITH LIMITED EXCEPTION) RELATED TO THE SERVICES THROUGH BINDING INDIVIDUAL ARBITRATION, WHICH MEANS THAT YOU WAIVE ANY RIGHT TO HAVE THOSE DISPUTES DECIDED BY A JUDGE OR JURY, AND (B) TO WAIVE YOUR RIGHT TO PARTICIPATE IN CLASS ACTIONS, CLASS ARBITRATIONS, OR REPRESENTATIVE ACTIONS, AS SET FORTH BELOW. YOU HAVE THE RIGHT TO OPT-OUT OF THE ARBITRATION CLAUSE AND THE CLASS ACTION WAIVER AS EXPLAINED IN SECTION 7. ### Table of Contents 1. General 2. Who May Use The Services 3. Rights We Grant You 4. Ownership and Content 5. Third Party Services and Materials 6. Disclaimers, Limitations of Liability and Indemnification 7. Arbitration and Class Action Waiver 8. Additional Provisions 9. General 1. Generation and Redemption of rUSD. In order to mint rUSD, users must deposit USDC into the smart contract for the Protocol. Users may do this through the Interface. Users will enter the amount of rUSD they wish to mint, and the Interface will confirm that such number of rUSD can be minted, or, if the total amount of rUSD that the user desires to mint cannot be minted at such time, the Interface will display the amount of rUSD that can be minted. The user can click to accept the transaction, and after acceptance, the Interface will cause USDC in the amount indicated by the user to be moved from the user’s Wallet (as defined below) to the Protocol, and after the Protocol has generated rUSD, will direct the Protocol to deposit such rUSD in such user’s Wallet.\ \ In order to redeem rUSD users must enter the amount of rUSD they want to redeem in the Interface, and the Interface will confirm that such number of rUSD can be redeemed by the Protocol, or, if the total amount of rUSD that the user desires to redeem cannot be redeemed at such time, the Interface will display the amount of rUSD that can be redeemed. The user can click to accept the transaction, and after acceptance, the Interface will cause rUSD in the amount displayed to be moved from the user’s Wallet and burned and will direct the Protocol to deposit USDC in such user’s Wallet. Note that redemption transactions may be subject to a time lag if there is insufficient USDC in the Peg Stability Model smart contract and other assets held in the Protocol reserves must be sold or redeemed to fund such redemptions. Both minting and redemption transactions will be subject to any fees associated with transfers both to and from the Protocol on the relevant blockchain. 2. Generation and Redemption of srUSD and trUSD. In order to mint srUSD and trUSD, users must deposit rUSD into the smart contract for the Protocol. Users may do this through the Interface. Users will enter the amount of srUSD or trUSD they wish to mint, and the Interface will confirm that such number of srUSD or trUSD, as applicable can be minted, or, if the total amount of srUSD or trUSD, as applicable, that the user desires to mint cannot be minted at such time, the Interface will display the amount of srUSD or trUSD that can be minted. The user can click to accept the transaction, and after acceptance, the Interface will cause rUSD in the amount indicated by the user to be moved from the user’s Wallet (as defined below) to the Protocol, and after the Protocol has generated srUSD or trUSD, will direct the Protocol to deposit such srUSD or trUSD in such user’s Wallet.\ \ In order to redeem rUSD users must enter the amount of rUSD they want to redeem in the Interface, and the Interface will confirm that such number of rUSD can be redeemed by the Protocol, or, if the total amount of rUSD that the user desires to redeem cannot be redeemed at such time, the Interface will display the amount of rUSD that can be redeemed. The user can click to accept the transaction, and after acceptance, the Interface will cause rUSD in the amount displayed to be moved from the user’s Wallet and burned, and will direct the Protocol to deposit USDC in such user’s Wallet. Note that redemption transactions may be subject to a time lag if there is insufficient USDC in the Peg Stability Model smart contract and other assets held in the Protocol reserves must be sold or redeemed to fund such redemptions. \ \ Both minting and redemption transactions will be subject to any fees associated with transfers both to and from the Protocol on the relevant blockchain. 3. Wallets. To use certain of the Services, you will need to connect a compatible third-party digital wallet (“Wallet”) with the Services. By using a Wallet in connection with the Services, you agree that you are using the Wallet under the terms and conditions of the applicable third-party provider of such Wallet. Wallets are not associated with, maintained by, supported by or affiliated with the Reservoir Protocol. You acknowledge and agree that we are not party to any transactions conducted while accessing our Interface, and we do not have possession, custody or control over any digital assets appearing on the Services. When you interact with the Interface, you retain control over your digital assets at all times. We accept no responsibility or liability to you in connection with your use of a Wallet, and we make no representations or warranties regarding how the Services will operate or be compatible with any specific Wallet. **We do not hold the private keys necessary to access the assets held in a Wallet, and we have no ability to help you access or recover your private keys and/or seed phrases for your Wallet. You are solely responsible for maintaining the confidentiality of your private keys and you are responsible for any transactions signed with your private keys.** 4. Updates; Monitoring. We may make any improvement, modifications or updates to the Services, including but not limited to changes and updates to the underlying software, infrastructure, security protocols, technical configurations or service features (the “Updates”) from time to time. Your continued access and use of the Services are subject to such Updates and you shall accept any patches, system upgrades, bug fixes, feature modifications, or other maintenance work that arise out of such Updates. We are not liable for any failure by you to accept and use such Updates in the manner specified or required by us. Although we are not obligated to monitor access to or participation in the Services, it has the right to do so for the purpose of operating the Services, to ensure compliance with the Terms and to comply with applicable law or other legal requirements. 5. Fees. We may charge or pass through fees for some or part of the Services we make available to you, including transaction or processing fees, blockchain gas or similar network fees. We will disclose the amount of fees we will charge or pass through to you for the applicable Service at the time you access, use or otherwise transact with the Services. Although we will attempt to provide accurate fee information, any such information reflects our estimate of fees, which may vary from the fees actually paid to use the Services and interact with the applicable blockchain with which the Services are compatible. Additionally, your Wallet provider may impose a fee to transact on the Services. We are not responsible for any fees charged by a third party. All transactions processed through the Services are non-refundable. You will be responsible for paying any and all taxes, duties and assessments now or hereafter claimed or imposed by any governmental authority associated with your use of the Services. In certain cases, your transactions through the Services may not be successful due to an error with the blockchain or the Wallet. We accept no responsibility or liability to you for any such failed transactions, or any transaction or gas fees that may be incurred by you in connection with such failed transactions. You acknowledge and agree that all information you provide with respect to transactions on the Services is accurate, current and complete, and you have the legal right to use such payment method. 10. Who May Use The Services 1. Eligibility. You must be 18 years of age or older and not be a Prohibited Person to use the Services. A “Prohibited Person” is any person or entity that is (a) the subject of any economic or trade sanctions administered or enforced by any governmental authority, including being designated on any list of prohibited or restricted parties by any governmental authority, such as the U.S. Treasury Department’s list of Specially Designated Nationals, the U.S. Department of Commerce Denied Persons List Entity List, the E.U. Consolidated List of persons and the U.K. Consolidated List of Financial Sanctions Targets, (b) located, a resident of or organized in the United States or any jurisdiction or territory that is the subject of comprehensive country-wide or regional economic sanctions or has been designated as “terrorist supporting” by the United Nations or the governmental authority of the European Union, United Kingdom or the United States, or (c) owned or controlled by such persons or entities listed in (a)-(b). You acknowledge and agree that you are solely responsible for complying with all applicable laws of the jurisdiction you are located or accessing the Services from in connection with your use of the Services. By using the Services, you represent and warrant that you meet these requirements and will not be using the Services for any illegal activity or to engage in the prohibited activities in Section 4.3. \ \ The Interface is provided as a tool for users to interact with the Protocol on their own initiative, with no endorsement or recommendation of cryptocurrency trading activities. In doing so, we are not recommending that users or potential users engage in cryptoasset trading activity, and users or potential users of the Interface in the UK should not regard this webpage or its contents as involving any form of recommendation, invitation or inducement to deal in cryptoassets. \ \ None of rUSD, srUSD or trUSD are being offered to the public in the EEA, and no party is seeking the admission to trading of rUSD, srUSD or trUSD in the EEA. Users or potential users of the Interface agree that they are acting on their own exclusive initiative in respect of any use of the Interface or the Protocol. \ \ None of rUSD, srUSD or trUSD are being offered to United States persons, and United States persons are not permitted to use the Interface or the Protocol. 2. Provision of Information. We may require you to provide certain information and documents regarding your use of the Services, including at the request of any competent authority or in case of application of any applicable law or regulation, including laws related to anti-money laundering or for counteracting financing of terrorism. We may also require you to provide such information or documents in cases where we have reason to believe: (i) that your Wallet is being used for illegal money laundering or for any other illegal activity; or (ii) you have concealed or reported false identification information or other details. You agree to provide us with accurate, complete and updated information in order for us to make these determinations. 11. Rights We Grant You 1. Right to Use Services. We hereby permit you to use the Services for your internal use only, provided that you comply with these Terms in connection with all such use. If any software, content or other materials owned or controlled by us are distributed to you as part of your use of the Services, we hereby grant you a personal, non-assignable, non-sublicensable, non-transferrable, and non-exclusive right and license to access and display such software, content and materials provided to you as part of the Services, in each case for the sole purpose of enabling you to use the Services as permitted by these Terms. Your access and use of the Services may be interrupted from time to time for any of several reasons, including, without limitation, the malfunction of equipment, periodic updating, maintenance or repair of the Service or other actions that we, in our sole discretion, may elect to take. 2. Restrictions On Your Use of the Services. You may not do any of the following in connection with your use of the Services, unless applicable laws or regulations prohibit these restrictions or you have our written permission to do so: \ (a) download, modify, copy, distribute, transmit, display, perform, reproduce, duplicate, publish, license, create derivative works from, or offer for sale any information contained on, or obtained from or through, the Services, except for temporary files that are automatically cached by your web browser for display purposes, or as otherwise expressly permitted in these Terms; \ \ (b) duplicate, decompile, reverse engineer, disassemble or decode the Services (including any underlying idea or algorithm), or attempt to do any of the same, except as expressly permitted by these Terms or applicable law; \ \ (c) use, reproduce or remove any copyright, trademark, service mark, trade name, slogan, logo, image, or other proprietary notation displayed on or through the Services; \ \ (d) use automation software (bots), hacks, modifications (mods) or any other unauthorized third-party software designed to modify the Services; \ \ (e) exploit the Services for any commercial purpose, including without limitation communicating or facilitating any commercial advertisement or solicitation; \ \ (f) access or use the Services in any manner that could disable, overburden, damage, disrupt or impair the Services or interfere with any other party’s access to or use of the Services or use any device, software or routine that causes the same; \ \ (g) attempt to gain unauthorized access to, interfere with, damage or disrupt the Services or the computer systems, wallets, accounts, protocols or networks connected to the Services; \ \ (h) circumvent, remove, alter, deactivate, degrade or thwart any technological measure or content protections of the Services or the computer systems, wallets, accounts, protocols or networks connected to the Services; \ \ (i) use any robot, spider, crawlers or other automatic device, process, software or queries that intercepts, “mines,” scrapes or otherwise accesses the Services to monitor, extract, copy or collect information or data from or through the Services, or engage in any manual process to do the same; \ \ (j) introduce any viruses, trojan horses, worms, logic bombs or other materials that are malicious or technologically harmful into our systems; \ \ (k) submit, transmit, display, perform, post or store any content that is inaccurate, unlawful, defamatory, obscene, lewd, lascivious, filthy, excessively violent, pornographic, invasive of privacy or publicity rights, harassing, threatening, abusive, inflammatory, harmful, hateful, cruel or insensitive, deceptive, or otherwise objectionable, use the Services for illegal, harassing, bullying, unethical or disruptive purposes, or otherwise use the Services in a manner that is obscene, lewd, lascivious, filthy, excessively violent, harassing, harmful, hateful, cruel or insensitive, deceptive, threatening, abusive, inflammatory, pornographic, inciting, organizing, promoting or facilitating violence or criminal or harmful activities, defamatory, obscene or otherwise objectionable; \ \ (l) violate any applicable law or regulation in connection with your access to or use of the Services; or \ \ (m) access or use the Services in any way not expressly permitted by these Terms. 3. Interactions with Other Users on the Services. You are responsible for your interactions with other users on or through the Services. While we reserve the right to monitor interactions between users, we are not obligated to do so, and we cannot be held liable for your interactions with other users, or for any user’s actions or inactions. If you have a dispute with one or more users, you release us (and our affiliates and subsidiaries, and our and their respective officers, directors, employees and agents) from claims, demands and damages (actual and consequential) of every kind and nature, known and unknown, arising out of or in any way connected with such disputes. In entering into this release you expressly waive any protections (whether statutory or otherwise) that would otherwise limit the coverage of this release to include only those claims which you may know or suspect to exist in your favor at the time of agreeing to this release. 12. Ownership and Content 1. Ownership of the Services. The Services, including their “look and feel” (e.g., text, graphics, images, logos), proprietary content, information and other materials, and all related names, logos, product and service names, designs and slogans, are protected under copyright, trademark and other intellectual property laws. You agree that we and/or our licensors own all right, title and interest in and to the Services (including any and all intellectual property rights therein) and you agree not to take any action(s) inconsistent with such ownership interests. We and our licensors reserve all rights in connection with the Services and its content, including, without limitation, the exclusive right to create derivative works. 2. Ownership of Feedback. We welcome feedback, bug reports, comments and suggestions for improvements to the Services (“Feedback”). You acknowledge and expressly agree that any contribution of Feedback does not and will not give or grant you any right, title or interest in the Services or in any such Feedback. All Feedback becomes our sole and exclusive property, and we may use and disclose Feedback in any manner and for any purpose whatsoever without further notice or compensation to you and without retention by you of any proprietary or other right or claim. You hereby assign to us any and all right, title and interest (including, but not limited to, any patent, copyright, trade secret, trademark, show-how, know-how, moral rights and any and all other intellectual property right) that you may have in and to any and all Feedback. 13. Third Party Services and Materials 1. Third Party Services and Materials. The Services may display, include or make available services, content, data, information, applications or materials from third parties (“Third-Party Services and Materials”) or provide links to certain third party websites. We do not endorse any Third-Party Services and Materials. You agree that your access and use of such Third-Party Services and Materials is governed solely by the terms and conditions of such Third-Party Services and Materials, as applicable. We are not responsible or liable for, and makes no representations as to any aspect of such Third-Party Services and Materials, including, without limitation, their content or the manner in which they handle, protect, manage or process data or any interaction between you and the provider of such Third-Party Services and Materials. We are not responsible for examining or evaluating the content, accuracy, completeness, availability, timeliness, validity, copyright compliance, legality, decency, quality or any other aspect of such Third-Party Services and Materials or websites. You irrevocably waive any claim with respect to such Third-Party Services and Materials. We are not liable for any damage or loss caused or alleged to be caused by or in connection with your enablement, access or use of any such Third-Party Services and Materials, or your reliance on the privacy practices, data security processes or other policies of such Third-Party Services and Materials. Third-Party Services and Materials and links to other websites are provided solely as a convenience to you. 14. Disclaimers, Limitations of Liability and Indemnification 1. Disclaimers \ (a) Your access to and use of the Services and the Protocol are at your own risk. You understand and agree that the Services are provided to you on an “AS IS” and “AS AVAILABLE” basis. Without limiting the foregoing, to the maximum extent permitted under applicable law, the companies that developed and that support the Protocol, their affiliates, related companies, officers, directors, employees, agents, representatives, partners and licensors (the “Protocol Entities”) DISCLAIM ALL WARRANTIES AND CONDITIONS, WHETHER EXPRESS, IMPLIED OR STATUTORY, INCLUDING WITHOUT LIMITATION ANY WARRANTIES RELATING TO TITLE, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT, USAGE, QUALITY, PERFORMANCE, SUITABILITY OR FITNESS OF THE SERVICES AND THE PROTOCOL FOR ANY PARTICULAR PURPOSE, OR AS TO THE ACCURACY, QUALITY, SEQUENCE, RELIABILITY, WORKMANSHIP OR TECHNICAL CODING THEREOF, OR THE ABSENCE OF ANY DEFECTS THEREIN WHETHER LATENT OR PATENT. The Protocol Entities make no warranty or representation and disclaim all responsibility and liability for: (a) the completeness, accuracy, availability, timeliness, security or reliability of the Services and the Protocol; (b) any harm to your computer system, loss of data, or other harm that results from your access to or use of the Services or the Protocol; (c) the operation or compatibility with any other application or any particular system or device, including any Wallets; (d) whether the Services or the Protocol will meet your requirements or be available on an uninterrupted, secure or error-free basis; and (e) whether the Services or the Protocol will protect your assets from theft, hacking, cyber attack, or other form of loss caused by third party conduct. Nothing contained in the Services constitutes, or is meant to constitute, financial, legal or other professional advice of any kind. If you require advice in relation to any financial, legal or other professional matter you should consult an appropriate professional. No advice or information, whether oral or written, obtained from the Protocol Entities or through the Services, will create any warranty or representation not expressly made herein. \ \ (b) THE LAWS OF CERTAIN JURISDICTIONS DO NOT ALLOW LIMITATIONS ON IMPLIED WARRANTIES OR THE EXCLUSION OR LIMITATION OF CERTAIN DAMAGES AS SET FORTH IN SECTION 7.2 BELOW. IF THESE LAWS APPLY TO YOU, SOME OR ALL OF THE ABOVE DISCLAIMERS, EXCLUSIONS, OR LIMITATIONS MAY NOT APPLY TO YOU, AND YOU MAY HAVE ADDITIONAL RIGHTS. \ \ (c) WE TAKE NO RESPONSIBILITY AND ASSUME NO LIABILITY FOR ANY CONTENT THAT YOU, ANOTHER USER, OR A THIRD PARTY CREATES, UPLOADS, POSTS, SENDS, RECEIVES, OR STORES ON OR THROUGH OUR SERVICES. \ \ (d) YOU UNDERSTAND AND AGREE THAT YOU MAY BE EXPOSED TO CONTENT THAT MIGHT BE OFFENSIVE, ILLEGAL, MISLEADING, OR OTHERWISE INAPPROPRIATE, NONE OF WHICH WE WILL BE RESPONSIBLE FOR. 2. Limitations of Liability. TO THE EXTENT NOT PROHIBITED BY LAW, YOU AGREE THAT IN NO EVENT WILL WE BE LIABLE (A) FOR DAMAGES OF ANY KIND, INCLUDING INDIRECT, SPECIAL, EXEMPLARY, CONSEQUENTIAL, INCIDENTAL, OR PUNITIVE DAMAGES (INCLUDING, BUT NOT LIMITED TO, PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES, LOSS OF USE, DATA OR PROFITS, BUSINESS INTERRUPTION OR ANY OTHER DAMAGES OR LOSSES, ARISING OUT OF OR RELATED TO YOUR USE OR INABILITY TO USE THE SERVICES), HOWEVER CAUSED AND UNDER ANY THEORY OF LIABILITY, WHETHER UNDER THESE TERMS OR OTHERWISE ARISING IN ANY WAY IN CONNECTION WITH THE SERVICES OR THESE TERMS AND WHETHER IN CONTRACT, STRICT LIABILITY OR TORT (INCLUDING NEGLIGENCE OR OTHERWISE) EVEN IF WE HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGE, OR (B) FOR ANY OTHER CLAIM, DEMAND OR DAMAGES WHATSOEVER RESULTING FROM OR ARISING OUT OF OR IN CONNECTION WITH THESE TERMS OR THE DELIVERY, USE OR PERFORMANCE OF THE SERVICES. OUR TOTAL LIABILITY TO YOU FOR ANY DAMAGES FINALLY AWARDED SHALL NOT EXCEED ONE THOUSAND DOLLARS (US $1,000). THE FOREGOING LIMITATIONS WILL APPLY EVEN IF THE ABOVE STATED REMEDY FAILS OF ITS ESSENTIAL PURPOSE. 3. Acknowledgement; Assumption of Risks. \ \ (a) By using the Services, you represent that you have sufficient knowledge and experience in business and financial matters, including a sufficient understanding of blockchain technologies, cryptocurrencies and other digital assets, storage mechanisms (such as Wallets), and blockchain-based software systems to be able to assess and evaluate the risks and benefits of the Services contemplated hereunder, and will bear the risks thereof, including loss of all amounts paid, and the risk that the cryptocurrencies and other digital assets may have little or no value. You acknowledge and agree that there are risks associated with purchasing and holding cryptocurrency and using blockchain technology. These include, but are not limited to, risk of losing access to cryptocurrency due to slashing, loss of private key(s), custodial error or purchaser error, risk of mining or blockchain attacks, risk of hacking and security weaknesses, risk of unfavorable regulatory intervention in one or more jurisdictions, risk related to token taxation, risk of personal information disclosure, risk of uninsured losses, volatility risks, and unanticipated risks. Additional risks related to the Services and the Protocol are set forth at [Risk Factors](/security-and-compliance/risk-factors). \ \ (b) No advice or information, whether oral or written, obtained from us or provided through the Services, will create any warranty or representation not expressly made herein. You agree and understand that all transfers, staking, or other actions you perform utilizing transaction data provided by the Interface are considered unsolicited, which means that you have not received any investment advice from us in connection with any such action, we have not actively solicited your use of the Services, and that we do not conduct a suitability review of any such action. 4. Indemnification. By entering into these Terms and accessing or using the Services, you agree that you shall defend, indemnify and hold the Protocol Entities harmless from and against any and all claims, costs, damages, losses, liabilities and expenses (including attorneys’ fees and costs) incurred by the Protocol Entities arising out of or in connection with: (a) your violation or breach of any term of these Terms or any applicable law or regulation; (b) your violation of any rights of any third party; (c) your misuse of the Services; or (d) your negligence or wilful misconduct. If you are obligated to indemnify any Protocol Entity hereunder, then you agree that we will have the right, in our sole discretion, to control any action or proceeding and to determine whether we wish to settle, and if so, on what terms, and you agree to fully cooperate with us in the defense or settlement of such claim. 5. Third Party Beneficiaries. You acknowledge and agree that the Protocol Entities are beneficiaries of these Terms, including under Sections 7 and 8. 15. Arbitration and Class Action Waiver 1. PLEASE READ THIS SECTION CAREFULLY – IT MAY SIGNIFICANTLY AFFECT YOUR LEGAL RIGHTS, INCLUDING YOUR RIGHT TO FILE A LAWSUIT IN COURT AND TO HAVE A JURY HEAR YOUR CLAIMS. IT CONTAINS PROCEDURES FOR MANDATORY BINDING ARBITRATION AND A CLASS ACTION WAIVER. 2. Informal Process First. You agree that in the event of any dispute between you and the Protocol Entities, either party will first contact the other party and make a good faith sustained effort to resolve the dispute before resorting to more formal means of resolution, including without limitation, any court action, after first allowing the receiving party 30 days in which to respond. You agree that this dispute resolution procedure is a condition precedent which must be satisfied before initiating any arbitration against the other party. 3. Arbitration Agreement and Class Action Waiver. After the informal dispute resolution process, any remaining dispute, controversy, or claim (collectively, “Claim”) relating in any way to the Services, including the Interface, any use or access or lack of access thereto, and any other usage of the Protocol even if interacted with outside of the Services or Interface, will be resolved by arbitration, including threshold questions of arbitrability of the Claim. You agree that any Claim will be settled by final and binding arbitration, using the English language, administered by JAMS under its International Arbitration Rules and Procedures (the “JAMS Rules”) then in effect (those rules are deemed to be incorporated by reference into this section, and as of the date of these Terms), which are currently available at jamsadr.com. A party who wishes to start arbitration must submit a written Request for Arbitration to JAMS and give notice to the other party as specified in the JAMS Rules. Arbitration will be handled by a sole arbitrator in accordance with the JAMS Rules. Judgment on the arbitration award may be entered in any court that has jurisdiction. Any arbitration under these Terms will take place on an individual basis – class arbitrations and class actions are not permitted. You understand that by agreeing to these Terms, you are waiving the right to trial by jury or to participate in a class action or class arbitration. 4. Exceptions. Notwithstanding the foregoing, you agree that the following types of disputes will be resolved in a court of proper jurisdiction: (i) disputes or claims within the jurisdiction of a small claims court consistent with the jurisdictional and dollar limits that may apply, as long as it is brought and maintained as an individual dispute and not as a class, representative, or consolidated action or proceeding; (ii) disputes or claims where the sole form of relief sought is injunctive relief (including public injunctive relief); or (iii) intellectual property disputes. 5. Costs of Arbitration. Payment of all filing, administration, and arbitrator costs and expenses will be governed by the JAMS Rules, except that if you demonstrate that any such costs and expenses owed by you under those rules would be prohibitively more expensive than a court proceeding, we will pay the amount of any such costs and expenses that the arbitrator determines are necessary to prevent the arbitration from being prohibitively more expensive than a court proceeding (subject to possible reimbursement as set forth below). Fees and costs may be awarded as provided pursuant to applicable law. If the arbitrator finds that either the substance of your claim or the relief sought in the demand is frivolous or brought for an improper purpose then the payment of all fees will be governed by the JAMS rules. In that case, you agree to reimburse us for all monies previously disbursed by it that are otherwise your obligation to pay under the applicable rules. If you prevail in the arbitration and are awarded an amount that is less than the last written settlement amount offered by us before the arbitrator was appointed, we will pay you the amount it offered in settlement. The arbitrator may make rulings and resolve disputes as to the payment and reimbursement of fees or expenses at any time during the proceeding and upon request from either party made within 14 days of the arbitrator’s ruling on the merits. 6. Opt-Out. You have the right to opt-out and not be bound by the arbitration provisions set forth in these Terms by sending written notice of your decision to opt-out to . The notice must be sent within thirty (30) days of your first registering to use the Services or agreeing to these Terms; otherwise you shall be bound to arbitrate disputes on a non-class basis in accordance with these Terms. If you opt out of only the arbitration provisions, and not also the class action waiver, the class action waiver still applies. You may not opt out of only the class action waiver and not also the arbitration provisions. If you opt-out of these arbitration provisions, we also will not be bound by them. 7. WAIVER OF RIGHT TO BRING CLASS ACTION AND REPRESENTATIVE CLAIMS. TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, YOU AGREE THAT ANY PROCEEDING TO RESOLVE ANY DISPUTE, CLAIM, OR CONTROVERSY WILL BE BROUGHT AND CONDUCTED ONLY IN THE RESPECTIVE PARTY’S INDIVIDUAL CAPACITY AND NOT AS PART OF ANY CLASS (OR PURPORTED CLASS), CONSOLIDATED, MULTIPLE-PLAINTIFF, OR REPRESENTATIVE ACTION OR PROCEEDING (“CLASS ACTION”). YOU AGREE TO WAIVE THE RIGHT TO PARTICIPATE AS A PLAINTIFF OR CLASS MEMBER IN ANY CLASS ACTION. YOU EXPRESSLY WAIVE ANY ABILITY TO MAINTAIN A CLASS ACTION IN ANY FORUM. IF THE DISPUTE IS SUBJECT TO ARBITRATION, THE ARBITRATOR WILL NOT HAVE THE AUTHORITY TO COMBINE OR AGGREGATE CLAIMS, CONDUCT A CLASS ACTION, OR MAKE AN AWARD TO ANY PERSON OR ENTITY NOT A PARTY TO THE ARBITRATION. FURTHER, YOU AGREE THAT THE ARBITRATOR MAY NOT CONSOLIDATE PROCEEDINGS FOR MORE THAN ONE PERSON’S CLAIMS, AND IT MAY NOT OTHERWISE PRESIDE OVER ANY FORM OF A CLASS ACTION. FOR THE AVOIDANCE OF DOUBT, HOWEVER, YOU CAN SEEK PUBLIC INJUNCTIVE RELIEF TO THE EXTENT AUTHORIZED BY LAW AND CONSISTENT WITH THE EXCEPTIONS CLAUSE ABOVE. IF THIS CLASS ACTION WAIVER IS LIMITED, VOIDED, OR FOUND UNENFORCEABLE, THEN, UNLESS THE PARTIES MUTUALLY AGREE OTHERWISE, THE PARTIES’ AGREEMENT TO ARBITRATE SHALL BE NULL AND VOID WITH RESPECT TO SUCH PROCEEDING SO LONG AS THE PROCEEDING IS PERMITTED TO PROCEED AS A CLASS ACTION. If a court decides that the limitations of this paragraph are deemed invalid or unenforceable, any putative class, private attorney general, or consolidated or representative action must be brought in a court of proper jurisdiction and not in arbitration. 16. Additional Provisions 1. Updating These Terms. We may modify these Terms from time to time in which case we will update the “Last Revised” date at the top of these Terms. If we make changes that are material, we will use reasonable efforts to attempt to notify you, such as by e-mail and/or by placing a prominent notice on the first page of the Interface. However, it is your sole responsibility to review these Terms from time to time to view any such changes. The updated Terms will be effective as of the time of posting, or such later date as may be specified in the updated Terms. Your continued access or use of the Services after the modifications have become effective will be deemed your acceptance of the modified Terms. No amendment shall apply to a dispute for which an arbitration has been initiated prior to the change in Terms. 2. Suspension; Termination. If you breach any of the provisions of these Terms, all licenses granted by us in accordance with these Terms will terminate automatically. Additionally, we may, in our sole discretion, suspend or terminate your access to or use of any of the Services, with or without notice, for any or no reason, including, without limitation, (i) if we believe, in our sole discretion, you have engaged in any of the prohibited activities set forth in Section 4.3; (ii) if you provide any incomplete, incorrect or false information to us; (iii) if we determine that you are a Prohibited Person, or if we do not have sufficient information to determine if you are Prohibited Person; (iv) if you have breached any portion of these Terms; and/or (v) if we determine such action is necessary to comply with these Terms, any of our policies, procedures or practices, or any law rule or regulation. All sections which by their nature should survive the termination of these Terms shall continue in full force and effect subsequent to and notwithstanding any termination of this Agreement. Termination will not limit any of our other rights or remedies at law or in equity. 3. Injunctive Relief. You agree that a breach of these Terms will cause irreparable injury to the Protocol Entities, for which monetary damages would not be an adequate remedy and the Protocol Entities shall be entitled to equitable relief in addition to any remedies it may have hereunder or at law without a bond, other security or proof of damages. 4. Force Majeure. We will not be liable or responsible to you, nor be deemed to have defaulted under or breached these Terms, for any failure or delay in fulfilling or performing any of our obligations under these Terms or in providing the Services, when and to the extent such failure or delay is caused by or results from any events beyond our ability to control, including acts of God; flood, fire, earthquake, epidemics, pandemics, tsunami, explosion, war, invasion, hostilities (whether war is declared or not), terrorist threats or acts, riot or other civil unrest, government order, law, or action, embargoes or blockades, strikes, labor stoppages or slowdowns or other industrial disturbances, shortage of adequate or suitable Internet connectivity, telecommunication breakdown or shortage of adequate power or electricity, and other similar events beyond our control. 5. Miscellaneous. If any provision of these Terms shall be unlawful, void or for any reason unenforceable, then that provision shall be deemed severable from these Terms and shall not affect the validity and enforceability of any remaining provisions. These Terms and the licenses granted hereunder may be assigned by us but may not be assigned by you. No waiver by either party of any breach or default hereunder shall be deemed to be a waiver of any preceding or subsequent breach or default. The section headings used herein are for reference only and shall not be read to have any legal effect. Those who choose to access the Services do so at their own initiative and are responsible for compliance with applicable local laws. These Terms are governed by the laws of the Cayman Islands, without regard to conflict of laws rules, and the proper venue for any disputes arising out of or relating to any of the same will be the state and federal courts located in the Cayman Islands. 6. How to Contact Us. You may contact us regarding the Services or these Terms by e-mail at . # Risk Factors *Last Revised on August 23, 2024* *The following risk factors highlight some core risks associated with rUSD, srUSD and trUSD (the “Protocol Tokens”). The list of risk factors set forth below does not purport to be a complete enumeration or explanation of the risks involved in the purchase of the Protocol Tokens.* Risks Regarding the Reserves *No guarantee of rUSD, srUSD or trUSD redeemability.* Subject to the limitations set forth in the Terms of Service for the Protocol (the “Terms of Service”), (i) in order to mint rUSD users must deposit one USDC for every rUSD that is to be minted and when rUSD are transferred to the Protocol to be redeemed, such redemption will be at a rate of one USDC per one rUSD, less any fees where applicable; (ii) in order to mint srUSD or trUSD users must deposit one rUSD for every srUSD or trUSD that is to be minted and when srUSD or trUSD are transferred to the Protocol to be redeemed, at the applicable redemption period, such redemption will be at a rate of one rUSDC per one srUSD or trUSD, respectively, less any fees where applicable. *However, there is no guarantee that the Reserves will be sufficient to enable holders of Protocol Tokens to redeem all such Protocol Tokens on issue for USDC on a 1:1 basis.* The intent of the developers of the Protocol is that USDC used to mint Protocol Tokens will be deployed in one or more digital or real-world assets as discussed further below (such assets, collectively, the “Reserves”). There is no guarantee that the value of the Reserves will always exceed the aggregate USDC redemption value of all then outstanding Protocol Tokens, in part due to the risks associated with the Reserves discussed below, or that the Protocol will otherwise have the ability to satisfy all requests to redeem rUSD (or srUSD or trUSD) for USDC on a 1:1 basis. Moreover, trUSDs can only be redeemed in accordance with their maturity schedule; thus the risk of insufficient Reserves may be greater during the open periods for trUSD redemptions. In addition, there is no guarantee that the price of one Protocol Stablecoin will always equal one USDC or one U.S. Dollar ($1) across all platforms and when trading in the secondary market. Due to a variety of factors outside of the control of any one party, the value of the Protocol Tokens, including on both centralized and decentralized cryptocurrency exchange platforms and protocols, may fluctuate above or below one USDC or $1. The Protocol and the parties involved in the development and operation of the Protocol cannot control how third parties or secondary markets value the Protocol Tokens and are not responsible for any losses or other issues that may result from fluctuations in the value of Protocol Tokens. *Risks regarding the Reserves.* Users’ ability to continue to redeem rUSD (and consequently srUSD or trUSD) on a 1:1 basis for USDC may be materially and adversely impacted by risks associated with the Reserves. These risks include but are not limited to: 1. *General Risks Relating to Investments.* The Protocol will initially deploy the Reserves to invest in certain funds managed by third-party asset managers (“Asset Managers”). The initial Asset Manager will be Fortunafi Capital Management LLC, although following the introduction of decentralized Protocol governance, the allocation of the Reserves will be determined through governance. The Asset Managers will invest and deploy the Reserves using one or more trading or investment strategies (each, a “Trading Strategy”). All trading and investment activity involves a high degree of risk, including the risk that the entire principal amount invested may be lost. No guarantee or representation is made that the Trading Strategies will be successful. In the event that the Trading Strategies are unsuccessful, or certain risks associated with such Trading Strategies materialize or are realized, the Reserves may be adversely impacted or lost, which may adversely impact or compromise your ability to redeem Protocol Tokens on a 1:1 basis for USDC. As a result, the value of your Protocol Tokens may be materially and adversely impacted, up to and including a loss of all or substantially all amounts invested. 2. *Risks Related to Redemption Volume*. While the intent of the developers of the Protocol is to ensure that sufficient USDC remain available to fulfill all redemption requests, in circumstances where the Protocol is experiencing high volumes of redemption requests, the interests in the funds in which the Reserves are invested may need to be redeemed. While redemptions can be automatically sent for tokenized fund interests, if an Asset Manager needs to liquidate offchain positions, constraints on its ability to do so may adversely impact your ability to redeem Protocol Tokens in a timely manner. Moreover, increased volumes of redemption requests may also result in decreases in the value at which Protocol Tokens trade in secondary markets, which may form a feedback loop and contribute to further redemption requests. For example, if increased redemptions drive a decrease in the secondary market trading value of rUSD which in turn drives further redemption requests. Such feedback loops may further materially and adversely impact or compromise your ability redeem rUSD on a 1:1 basis for USDC and/or the value of your Protocol Tokens, up to and including a loss of all or substantially all value and principal invested. \ \ While it is intended that the Reserves will be invested so that Protocol Tokens can always be redeemed on a 1:1 basis for USDC, including through the use of the peg stability module which will hold USDC for redemptions, there is no guarantee that the USDC in the peg stability module will be sufficient to fulfill all outstanding requests. In addition, it is possible that the total value of the Reserves will be insufficient for the redemption of all outstanding Protocol Tokens. If the Reserves are not sufficient (either in USDC in the peg stability module, or in general) to redeem outstanding Protocol Tokens, then the Protocol will take efforts to increase reserves., but such efforts may not be successful. 3. *Trading, Investment, and Market Risk.* The Protocol was implemented to invest and deploy the Reserves using one or more trading strategies, including trading strategies utilizing derivatives and other sophisticated complex financial instruments. As a result of such trading strategies, the Reserves may be subject to a range of trading, investment, and market related risks as discussed in more detail below. These risks may materially and adversely impact your ability to redeem Protocol Tokens and could also materially and adversely detract from the value of your Protocol Tokens, up to and including potential loss of the entire value of your investment. *Unsecured Deposit.* The Protocol Tokens are not subject to any deposit insurance protection or any similar government or private industry deposit guaranty regimes. If one of the funds managed by the Asset Managers were to become insolvent, the Protocol would not have a secured claim against that fund, and holders of Protocol Tokens may not be able to recover their assets. In addition, because investment funds generally require a legal entity to be a subscriber to their fund, the nominal subscriber to the funds will be Reservoir Foundation, however the Reservoir Foundation has no legal or contractual relationship with the Protocol, the holders of Protocol Tokens, or the holders of Protocol Governance Tokens. Although the fund interests themselves are tokenized, there is a possibility that creditors of the Reservoir Foundation will be able to make claims against the tokenized fund interests that form part of the Reserves, which could cause the Reserves to be depleted such that not all Protocol Tokens can be redeemed for USDC on a 1:1 basis. *Derivatives Based Trading Strategies.* The Trading Strategies employed by the funds in which the Reserves are invested may involve the use of derivatives such as futures contracts. Derivatives are financial contracts whose value depends on, or is derived from, another underlying product or asset. Trading in derivatives involves additional and special risks that may be different to or greater than the risks associated with investing in the relevant underlying product or asset directly. Risks associated with derivatives and futures trading include but are not limited to the following: 1. *Volatility.* Derivatives and futures markets are highly volatile. The pricing and valuation of derivatives and futures are influenced by, among other things: changing supply and demand relationships, governmental actions, interest rates and other macroeconomic factors, national and international political and economic events, and prevailing psychological characteristics of the marketplace. There is no guarantee that the Asset Managers will engage in profitable derivatives trades or that the Asset Managers will not incur substantial losses in engaging in derivatives or futures trading in deploying the capital invested in the funds, including the Reserves. 2. *Leverage.* Derivatives and futures trading is typically leveraged, and thus may require a margin deposit of only a relatively small percentage in comparison with the total potential position value or liability under the relevant derivatives contract. As a result, a relatively small price movement in the underlying product or asset may result in a loss to the fund equal to or substantially greater than the amount of the deposit. Combined with the volatility of derivatives prices, the leveraged nature of derivatives trading can cause unpredictable, large and sudden losses of capital. 3. *Liquidity.* Derivatives positions may not be liquid and/or may only be able to be closed out on the exchange on which they were entered into or through a linked exchange. Derivatives exchanges may limit fluctuations in certain derivatives contract prices during a single day by regulations referred to as “daily price fluctuation limits” or “daily limits”. Once the price for a particular contract has increased or decreased by an amount equal to the “daily limit”, positions can be neither taken nor liquidated unless traders are willing to effect trades at or within the limit. Such illiquidity or transaction limits could prevent the Asset Managers from liquidating unfavorable positions, which could cause losses to the Reserves base and impair your ability to redeem Protocol Tokens. Imperfect hedging or management of market exposure as part of derivatives trading strategies could result in market or price exposure that has adverse impacts on the success of the funds in which the Reserves are invested, and consequently in the value of the Reserves. In such event, your ability to redeem Protocol Tokens on a 1:1 basis for USDC may be adversely impacted or compromised and, as a result, the value of your Protocol Tokens may be materially and adversely impacted, up to and including a loss of all or substantially all amounts invested. Risks Relating to the Protocol Generally *Risks Relating to the Launch of the Protocol.* The Protocol is currently in a beta state, and remains subject to further development and modification. There can be no assurance that it will function as intended or as described on the Protocol’s website or in other communications or will be maintained and developed according to current plans. There can be no assurance that you will be able to utilize the Protocol or the Protocol Tokens in any particular way. Accordingly, the Protocol and the Protocol Tokens could have limited or no utility. *Risks Relating to Tokens’ Value or Use in the Future*. Your ability to utilize the Protocol Tokens in the future is contingent upon numerous circumstances, many of which (including legal and regulatory conditions) are beyond our control. There is no assurance that purchasers will realize value from the Protocol Tokens and it is possible that your entire investment will be lost. For this reason, you should carefully review these risk factors and should consult with attorney, financial and tax advisors prior to making any investment decision with respect to the Protocol Tokens. The Protocol and the Protocol Tokens are new and relatively untested products. There is considerable uncertainty about their long-term viability, which could be affected by a variety of factors, including many market-based factors such as economic growth, inflation, and others. In addition, the success of the Protocol, cryptoasset networks and cryptoassets will depend on whether blockchain and other new technologies turn out to be useful and economically viable. *Risks Relating to Smart Contracts.* The Protocol and the Protocol Tokens are generally comprised of and governed by a number of smart contracts. Smart contracts are computer code that can be created and run by the users of the network on which such smart contract or program is based. A smart contract can take information as an input, process that information through the pre-determined rules and conditions defined in the computer code, and execute certain actions, such as transactions, pursuant to such programming. The use of smart contracts creates substantial risk exposures. Smart contracts are self-executing once deployed, generally without reliance on a central party, and use experimental cryptography. Smart-contract risks include the following, which may affect adoption, continued use, or functioning of the Protocol and the value and utility of the Protocol Tokens: 1. *Flawed or Imprecise Code.* Smart contract code may be imprecise or flawed. In such cases, smart contracts comprising the Protocol and the Protocol Tokens could have specifications or conditions that are implemented or executed in ways that are not expected. You may be at risk of losing all or a substantial portion of your Protocol Tokens, and the Protocol may lose access to the Reserves, through an adverse event relating to such code. Smart contracts could contain vulnerabilities or bugs that could be exploited, potentially resulting in a complete or substantial loss of your staked digital assets. Malicious actors could exploit such vulnerabilities or bugs to cause the execution of erroneous or unexpected slashing conditions or theft of your digital assets or the digital assets held by the Protocol smart contracts as part of the Reserves. 2. *Lack of Remediation.* If imprecise or flawed code is discovered in a deployed smart contract, it may not be susceptible to identification ex ante and remediation may be difficult or ineffective. In some cases, the only practical remediation may include deploying a new smart contract or incorporating updating mechanisms that may be disruptive, risky, complex, costly, time consuming, and/or unable to reverse adverse scenarios, including complete or substantial loss of your Protocol Tokens or the digital assets held by the Protocol smart contracts as part of the Reserves. 3. *Flaws in Programming Languages.* The programming languages used to code smart contracts pose risks, including vulnerabilities arising from language complexity, potential bugs and flaws in language designs or compilers, limitations in functionality or performance impacting implementation, and a lack of maturity and sustained support for certain languages impacting the reliability and security of the developed contracts. Even widely used programming languages may have compiler bugs or other flaws that, if discovered and exploited, may result in substantial or total losses of digital assets, including your Protocol Tokens or the digital assets held by the Protocol smart contracts as part of the Reserves. 4. *Lack of Control over Protocol and Upgrades.* It is envisaged that the Protocol will ultimately be governed collectively by the community of its users, represented by holders of Protocol governance tokens (the “Protocol Governance Token”). This means that although the original developers of the Protocol have engaged in substantial research and development with respect to the Protocol and its security features, any future changes to the Protocol may need to be voluntarily adopted by holders of the Protocol Governance Token through the governance process. At this point, there will be no single party that is able to control the Protocol code, or to ensure that there is an adequate or timely response to emergencies or other identified risks. Protocol Governance Tokenholders may make decisions or take actions through the governance process (or fail to make decisions or take actions) in ways that adversely affect you and/or the Protocol. In addition, the Protocol may not run or function as intended and in such cases, you may have limited recourse. Any of these could result in substantial or total losses of the value of your Protocol Tokens or the digital assets held by the Protocol smart contracts as part of the Reserves. 5. *Reliance on novel technologies.* Various technology solutions are and will be incorporated into the Protocol. Some or all of these technology solutions are relatively new and/or untested. There is significant risk to building and implementing new technologies that may have never been used or that are being used in different ways. There is no guarantee that such technologies will operate as intended or as described in any marketing or other materials related to the Protocol, or will continue to function according to current plans. *Multiple Other Risks.* It is possible that, due to any number of reasons, including but not limited to, lack of interest from users, inability to attract sustained third-party or community contributors to the Protocol, an unfavorable fluctuation in the value of digital and fiat assets and currencies, decrease in the utility of the Protocol, failure to generate commercial relationships, intellectual property ownership and other challenges, and macroeconomic and crypto-market-specific factors, the Protocol and the Protocol Tokens may no longer be viable to operate and it may be deprecated or cease to have any functionality, users, or viability. Legal and Regulatory Risks *Legality of Digital Assets.* It may be illegal, now or in the future, to own, hold, sell or use digital assets, including the Protocol Tokens, in one or more countries. Although currently digital assets are not regulated or are lightly regulated in most countries, one or more countries may take regulatory actions in the future that severely restricts the right to acquire, own, hold, sell or use digital assets or to exchange digital assets for fiat currency. Such an action may adversely affect the value or utility of the Protocol Tokens. *Unpredictability of potential enforcement actions.* Unpredictability of potential enforcement actions may also present risks to the success of the Protocol if actions are brought with respect to the Protocol or the Protocol Tokens. The digital asset market is new, and may be subject to heightened oversight and scrutiny, including investigations or enforcement actions. There can be no assurance that governmental authorities will not examine the operations of the Protocol or the issuance or marketing of the Protocol Tokens, or enact regulations or pursue enforcement actions against the entities that have developed and that support the Protocol, including how the Protocol Tokens are supported, which may result in curtailment of, or inability to operate, the Protocol as intended. In addition, non-governmental parties may bring private legal actions which may result in curtailment of, or inability to operate, the Protocol as intended. *Risks of New & Evolving Laws and Regulations.* There is significant risk surrounding the ongoing development of legal and regulatory frameworks governing blockchain technology all over the world, including in the United States, United Kingdom, European Union and other major jurisdictions, and as the blockchain, crypto, and web3 industry continues to grow, regulatory scrutiny is likely to increase across jurisdictions. The Protocol Tokens may be found to be subject to certain laws or regulatory regimes that could adversely impact you or the viability, utility, or value of the Protocol and the Protocol Tokens. Additionally, laws or interpretations may change and the Protocol or the Protocol Tokens may be subject to new or changed laws or regulations in the future. Any restrictive or prohibitive legislation or regulation on blockchains or digital assets could impair the adoption, viability, utility, or value of the Protocol or the Protocol Tokens and adversely affect market sentiment surrounding the Protocol Tokens. *Jurisdictional Restrictions.* Due to legal restrictions, Protocol Tokens cannot be minted and will not be redeemable in certain jurisdictions. These jurisdictions are listed in the Terms of Service. Even if the Protocol otherwise has sufficient Reserves to redeem Protocol Tokens held by you, if you are resident in or accessing the Services from one of these jurisdictions, you will not be able to mint or redeem Protocol Tokens. *Risks Associated with the Tax Treatment of Digital Assets.* The tax characterization of the Protocol Tokens is uncertain, and you must seek your own tax advice in all jurisdictions relevant to you in connection with your purchase and sale of Protocol Tokens. A purchase or sale (including any minting or redemption) of Protocol Tokens may result in adverse tax consequences to you, including withholding taxes, income taxes and tax reporting requirements. The uncertainty in the tax treatment of the Protocol Tokens and transactions in Protocol Tokens may expose holders to unforeseen future tax consequences. # Brand Kit {% file src="/files/HAgSRzU3aAwkg7KILNEB" %} {% file src="/files/Ptlnuk8sLIBIMaNowvMr" %} {% file src="/files/3sxbA3qMZuSu3Ix8CCO8" %} {% file src="/files/Hmvp3zHZBeHGwS71Mpu6" %} {% file src="/files/Mk6chYX4KhkScty0u7xN" %} {% file src="/files/gI4EodXOIFQ0v4NX3Sns" %} {% file src="/files/pPWigFXSQ0PzVvOly8Sj" %} {% file src="/files/zjGJcOP5azqT54N4JwRn" %} {% file src="/files/Qcq6Dvc4kXi4eePKSYla" %} {% file src="/files/tfexfnOPv19VZinJmm0I" %} {% file src="/files/WDVeG3vvhl2bf6Gjx6uA" %} {% file src="/files/j9DJfJs58PmIJgDAnOzu" %}