The house

At launch the protocol's reserve is the other side of every position. It is a USDC account owned by the program, and it can only take as much exposure as it can cover.

Where the reserve's money comes from

Source	How
$FLOAT creator fees	About 1.5% of $FLOAT trading volume, forwarded to the reserve automatically
Team seed	25,000 USDC at launch
House trading result	Spread capture and the other side of every position
Liquidations	What remains after the liquidator's bounty

Limits

Limit	Value
Net exposure per market	20% of the reserve (community listings: 5% for their first 90 days)
Net exposure across all markets	50% of the reserve
Floor after any open	USDC on hand ≥ 2 × total net exposure
Markets open once the reserve holds	50,000 USDC

Net exposure is the difference between everything long and everything short in a market. An open that would pass a limit is refused. An open that reduces exposure is always allowed.

Spread

The spread is 0.50% per side when a market's longs and shorts balance. It widens in a straight line to 3.00% as net exposure reaches the market's cap, and doubles for two hours after a halt. The cap-usage bar on every market reads Factory New at 0% and Battle-Scarred at 100%.

Target and surplus

The reserve aims to hold the larger of 250,000 USDC and four times total net exposure. Anything above that is released once a day, swapped to $FLOAT and burned.

Why a patch cannot bankrupt it

A game update can move an index a long way in a day. The reserve cannot lose more than the exposure it took on, and it never takes more than it can cover: exposure is capped as a share of the reserve, shorts are liquidated before they run past their collateral, and longs close automatically at +100%. The worst case is a loss the reserve was sized to pay.