> For the complete documentation index, see [llms.txt](https://quantixfinance.gitbook.io/quantixfinance-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://quantixfinance.gitbook.io/quantixfinance-docs/capital-formation-and-products/liquidity-reserve-or-treasury-supported-credit.md).

# Liquidity-Reserve or Treasury-Supported Credit

Some pools carry an additional layer of support beyond first-loss capital: a liquidity reserve or treasury backing held to smooth redemptions and cushion stress. Where first-loss is designed to absorb credit losses, a liquidity reserve is designed to meet withdrawals when deployed capital hasn't yet returned, reducing the chance that lenders face a redemption delay in ordinary conditions.

Whether a pool carries this feature is a decision made by that pool's delegate, not a protocol-wide guarantee — some pools maintain a reserve, others rely solely on loan repayment to meet withdrawals, and a lender choosing between pools should treat this as a real point of difference between them, not an assumed baseline. A reserve changes a pool's liquidity profile, not its underwriting: it says nothing about that pool's credit quality, only about how quickly lenders in it are likely to be paid out under stress. Where a reserve exists, it is disclosed as part of that pool's parameters — its source, its size, and whether it is a committed amount or something the delegate can draw down at discretion — so a lender can tell a reserve-supported pool from one that carries none, rather than assuming every pool behaves the same way on this dimension.