What Is Reserve Leverage?
Gross Productive Exposure divided by Net Reserve, with explicit additional risk.
What is it?
Reserve Leverage equals Gross Productive Exposure divided by Net Reserve.
Why does it exist?
It allows the reserve to operate more productive exposure with the same net capital while making additional downside and liquidation risk explicit.
How does it work economically?
A $2 million Net Reserve with $3 million Gross Exposure operates at 1.5×. The additional $1 million is exposure capacity, not backing.
Reserve leverage increases productive exposure of the reserve — not the number of tokens held by users. Gross Exposure is not additional backing.
What does the user see?
CORE displays 1.0×, BOOST 1.5×, and MAX 2.0×. The interface keeps Net Reserve fixed while the productive ring expands.
What can go wrong?
Higher leverage increases sensitivity to losses, funding costs, collateral requirements, forced deleveraging, and liquidation.
Metrics that prove it
Net ReserveDefinition, source, and current value.—
Gross ExposureDefinition, source, and current value.—
Reserve LeverageDefinition, source, and current value.—
Collateral RatioDefinition, source, and current value.—
Deleveraging ThresholdDefinition, source, and current value.—