Overview
Tori maintains a reserve fund to absorb drawdowns: a buffer funded by protocol revenue and held apart from both the backing assets and operational funds. It also stands behind events that fall outside normal operations.What the fund absorbs
The fund is drawn on in two situations:
Delta-neutral positions hold offsetting legs that converge over time, so they can show paper losses during market stress and resolve as conditions normalize. When the strategies lose money over a period, the reserve fund absorbs the drawdown, within its size. It also stands behind what the strategies were never built to absorb: a counterparty failing unexpectedly, a market dislocation beyond historical stress parameters, or an operational emergency that needs capital to resolve.
Funding and management
The fund is invested conservatively in highly liquid assets so it can be drawn on quickly when needed, kept segregated from operational funds, and included in the Proof of Reserves attestations published by Accountable. Its current size and coverage ratio can be checked there at any time.
Deployment
The decision to deploy reserve capital, for a drawdown or an extraordinary event, is made by the protocol team through the timelocked admin roles documented in Roles, Multisig and Timelocks, following established guidelines and thresholds.What it is, and what it is not
The fund has a finite size, disclosed in the attestations. It is a protocol-managed buffer, not third-party insurance. And it is one protective layer among several: diversified strategies, position and portfolio risk limits, and professional management all sit in front of it. It is also not part of the trading book. Backing assets support trUSD’s value and sit in active positions; the reserve fund sits aside until a drawdown or an extraordinary event calls on it. Both are attested.Next steps
Backing
What stands behind trUSD
Peg mechanism
How the price stays at a dollar
Security
Audits, monitoring, and the bounty
Risks
The full risk picture