# Protocol's GLP Reserve (The Reserve)

Instead of trying to completely eliminate the market volatility of Risk 2 and 3 mentioned in [Market Volatility Risks](/gmd-protocol/gmd-delta-neutral-strategy/market-volatility-risks.md), which is almost impossible, we simply decided to raise funds and create a reserve to absorb said risks. 

<figure><img src="/files/vwcrK9Xt5BefQhdcmneX" alt=""><figcaption></figcaption></figure>

**=>** We call it the **Protocol's GLP Reserve (The Reserve),** and it will come with the following functions and benefits:

### Functions:

* **The Reserve will absorb the risk of  Delta-Neutral Vaults underperforming due to impermanent loss by making up for the difference between the value of the Delta-Neutral Vaults' underlying GLP and users' staked assets.**&#x20;
* The Reserve will always consist of an amount of GLP worth **5-15%** of the total TVL of the three Delta-Neutral Vaults (If Vaults TVL is $2,000,000; there will be $200,000 worth of GLP in The Reserve).

### Benefits:

* Funds for The Reserve will be provided 100% by GMD Treasury.
* The Reserve will also gain the $GLP's profits from traders' losses. In the long run, traders are statistically destined to collectively lose.&#x20;
* Based on the historical data of GLP's performance compared to Single-Assets, The Reserve is significantly more likely to financially benefit from the volatility.&#x20;

**=>** Simply put, The Reserve is designed to take on more risks toward the protocol while obtaining more benefits and rewards for our users. <br>


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://gmd-protocol.gitbook.io/gmd-protocol/gmd-delta-neutral-strategy/protocols-glp-reserve-the-reserve.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.