> ## Documentation Index
> Fetch the complete documentation index at: https://docs.blackhaven.xyz/llms.txt
> Use this file to discover all available pages before exploring further.

# Overview

The Reserves hold all assets owned by Blackhaven. Their primary role is to back RBT, allocate liquidity across MegaETH DeFi, and manage holdings conservatively. Reserve operations prioritize conservative risk parameters with full on-chain transparency.

### Key Sources of Reserve Inflow

| Source               | Description                                                                             |
| -------------------- | --------------------------------------------------------------------------------------- |
| **User Deposits**    | Reserve assets from Fixed-Term Bonds                                                    |
| **Strategy Returns** | Variable, non-guaranteed returns from allocation to whitelisted MegaETH DeFi strategies |
| **Ecosystem Points** | MegaETH ecosystem points                                                                |
| **User Forfeitures** | Early exit fees, forfeited distributions, and forfeited ecosystem points                |
| **BAM**              | Executes two-way arbitrage when RBT trades above or below NAV                           |

### Amplifying RBT Backing

Reserve inflows route to the reserve base for RBT. Forfeited distributions, strategy returns, fees, and BAM above-NAV operations add to reserves while circulating supply is unchanged. BAM below-NAV operations reduce supply through burns.

<Info>
  Both mechanisms are mechanical responses to on-chain NAV conditions. The relationship between reserve value and circulating RBT supply is transparent on-chain.
</Info>

### MEGA Retention

Blackhaven retains MEGA tokens accumulated through ecosystem points attributable to reserve activity. Points accrue to the reserves through Protocol-Owned Liquidity (POL) positions, forfeits, early-exit fees, and capital allocations.

Retained MEGA is held in reserves and may be deployed per governance. MEGA may be staked in the MegaETH Sequencer, with any sequencer rewards routed to the reserves.