# 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](https://gmd-protocol.gitbook.io/gmd-protocol/gmd-delta-neutral-strategy/market-volatility-risks), which is almost impossible, we simply decided to raise funds and create a reserve to absorb said risks. 

<figure><img src="https://3436074066-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F4KfJtfPYze0OiiDBxN1M%2Fuploads%2FxTXBSiUIZU2uB1NDZ8qL%2FColorful%20Watercolor%20Twitter%20Header.png?alt=media&#x26;token=0037fa48-56a8-40fc-990f-12074c73bd22" 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>