What the Reserve is
The Launch Reserve is a vault of the open-source realize Protocol on Solana. It holds two tranches in one pot: realize's own capital and SOL supplied by the public, represented by shares. The parameters below are constants of the program, published when the Reserve is initialised and unchangeable afterwards. realize cannot move supplied SOL anywhere except into a launch whose route pays its returns back into the same vault, and cannot withdraw its own capital below the minimum cover.
Funding order and limits
- Every launch is funded from realize's idle capital first, as far as what stays idle still covers 40% of the supplied capital at work; supplied capital is used only for the rest.
- Supplied capital at work never exceeds 70% of supplied assets.
- Liquidity already reserved for pending withdrawals is never used to fund a launch.
- realize's idle capital must remain at or above 40% of the supplied capital at work, checked on-chain when a launch is bought and when realize withdraws; capital realize has put into launches does not count, and realize cannot withdraw below that cover.
- A deposit is priced including the suppliers' part of revenue that has arrived but is not yet in the share price, so nobody can buy in at the old price.
Losses
When a funded launch returns less than it took, realize's tranche loses its own part first and then covers the suppliers' missing principal from its idle capital, as far as it goes. The share price does not fall while that cover holds. If a run of shortfalls ever exhausted realize's tranche, the remaining shortfall would reduce the share price; this is recorded on-chain.
realize's own capital carries the one scenario code cannot protect, never the suppliers: a launch graduated in one block from below 70% of the curve and dumped before the program can sell. 40% idle cover is more than the 36.5% a launch can lose even in that case. A loss absorbed by realize is recovered by realize from later inflows of the same launch before anything counts as revenue.
Withdrawals
A withdrawal is a request. After the withdrawal cooldown set on-chain (shown on the Reserve page) it is paid from idle supplied liquidity, pro rata with every other pending request. A claim cut short by liquidity is paid its pro-rata share and leaves the queue, so identical requests get identical amounts in any order; the rest can be requested again. What cannot be paid from idle liquidity becomes available as capital returns from launches, including the liquidation of zombie tokens. A request can be cancelled at any time. A full exit can therefore take as long as the launches funded with that capital take to return it.
Risks and no promised return
- Supplied SOL backs early-stage tokens. The program limits risk; it does not remove it.
- Nothing here is a promised return, a deposit account or credit extended to realize. The supplier's counterparty is the program, whose rules are public and verifiable.
- Smart-contract risk exists. The program's source, tests and reproducible build are published; the upgrade authority is disclosed.
- Withdrawal timing depends on liquidity. Suppliers who may need their capital quickly should not supply.
- Tax and regulatory treatment depends on the supplier's jurisdiction.
This is a product specification rendered as policy text. It is not legal, tax, investment or regulatory advice and must be reviewed by qualified legal and security specialists before public deployment.