> ## Documentation Index
> Fetch the complete documentation index at: https://docs.tori.finance/llms.txt
> Use this file to discover all available pages before exploring further.

# Backing & Reserves

> How trUSD is backed

## Overview

Every trUSD in circulation is backed by protocol reserves: real assets held in custody and deployed across hedged, market-neutral positions. Independent attestations of those reserves run continuously and are published at [tori.accountable.capital](https://tori.accountable.capital), where anyone can check them.

## How backing works

Fiat-backed stablecoins hold dollars and T-bills in bank accounts. Tori's reserves instead sit in hedged positions constructed to carry minimal directional exposure, professionally managed and continuously monitored. The returns those positions generate fund rewards for strUSD stakers.

| Model | Backing | Rewards to holders |
| - | - | - |
| Fiat stablecoins | Cash and T-bills in banks | None |
| Algorithmic stables | Algorithmic mechanisms | Variable |
| Tori (trUSD) | Hedged trading positions | For strUSD stakers |

## Transparency

### Proof of reserves

<Card title="Accountable" icon="check-double" href="https://tori.accountable.capital">
  Independent attestations of protocol reserves, refreshed continuously and published for anyone to inspect.
</Card>

Each attestation covers total assets under management, asset composition and allocation, the liability coverage ratio, and the status of the reserve fund.

### On-chain data

Smart contract balances, token supply, transaction history, and staking contract state are all public on Ethereum. Addresses are listed on the [Contract Addresses](/resources/contracts) page.

## Custody

Reserves are held in two layers.

On-chain assets sit in audited smart contracts. Critical operations require multiple approvals, and sensitive parameter changes pass through a 24-hour timelock. Which keys exist, who holds them, and what each role can do is documented in [Roles, Multisig and Timelocks](/security/roles).

Off-chain assets are held with qualified institutional custodians in segregated accounts, not commingled with operational funds. The protocol trades only with established counterparties that pass its due diligence.

The security stack behind both layers, including the Sherlock and Nethermind audits, Hypernative monitoring, and the bug bounty, is covered in [Security](/security/overview).

## Risk management

Position-level controls cap exposure to any single position, enforce diversification across assets, and cut risk automatically when a position moves adversely. At the portfolio level, Value-at-Risk limits constrain total exposure, positions are stress-tested against extreme scenarios, correlations are monitored so diversification stays real, and a liquidity floor is kept so redemptions can be processed.

### Reserve fund

A portion of protocol revenue goes to a [reserve fund](/solution/reserve-fund) held as a buffer against extraordinary events.

## Verify it yourself

<Steps>
  <Step title="Check the attestations">
    Accountable publishes reserve attestations at [tori.accountable.capital](https://tori.accountable.capital): total assets, liabilities, and the coverage ratio.
  </Step>

  <Step title="Check the chain">
    Contract balances and token supply are verifiable directly on Ethereum, using the addresses on the [contracts page](/resources/contracts).
  </Step>
</Steps>

## Next steps

<CardGroup cols={2}>
  <Card title="Peg mechanism" icon="scale-balanced" href="/solution/peg-mechanism">
    Why trUSD tracks the dollar
  </Card>

  <Card title="Reserve fund" icon="piggy-bank" href="/solution/reserve-fund">
    The buffer behind the backing
  </Card>

  <Card title="Strategy" icon="brain" href="/strategy/overview">
    Where the rewards come from
  </Card>

  <Card title="Risks" icon="triangle-exclamation" href="/resources/risks">
    What can go wrong, and how it is managed
  </Card>
</CardGroup>


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