> For the complete documentation index, see [llms.txt](https://gorillaecosystem.gitbook.io/gorilla-ecosystem-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://gorillaecosystem.gitbook.io/gorilla-ecosystem-docs/dapps-within-the-gorilla-ecosystem/gorilla-investments/wbtc-reserve.md).

# wBTC reserve

## What is it?

The wBTC reserve is the reserve of BTC the shareowners of the fund own.

### How much money goes into the wBTC reserve

A minimum of 10% of all deposits people use to buy shares of the fund are traded into wBTC, and held by the fund, along with an undefined percent of profits from all trades.

### Why we have a wBTC reserve

A wBTC reserve was created so that the fund can create profit for the long term as well as the short term. 

By trading on higher risk protocols, and altcoins, the protocol can generate profit for its investors in the short term, and by holding a large amount of wBTC, the protocol can generate wealth for its investors in the long term.

#### Backing the fund

By holding a certain amount of BTC at all times, the fund remains "backed" by an asset that is 100% here to stay for decades. Since the initial deposit used to buy a share of the fund is never returned to a user directly from the fund, the fund can continuously grow a backing of BTC, which gives each share of the fund an intrinsic value as all the BTC in the fund is owned by the shareowner's

### Managing the size of the reserve

The amount of profit and percent of initial deposits that will be entered into the wBTC reserve is dependent on market conditions. 

If the market is hitting all-time highs, it is likely we will not be depositing much of the profit into the wBTC reserve, and only depositing the minimum 10% from each new share that is bought from the protocol. 

*This is done because all-time highs won't last forever, and we don't want to be holding a lot of BTC when BTC eventually crashes. Instead, all the profit is paid back out to investors, who can reinvest in the fund if they would like.* 

If the market is crashing, it is likely the fund will invest up to 50% of the profit generated from investments into the wBTC fund and pay the rest back out to investors. 

*This is done so that investors can earn a profit on their already existing profit, as when the market recovers, BTC will recover as well, and the profits investors will make will be double. (This is because the fund made a profit from the trades the fund made and said profit was used to buy BTC, which then rises and generates more profit!)*

*A maximum of 50% of the profit generated by the protocol can be traded and held in the wBTC fund. For the percent to rise above 50%, a vote must pass.*

*A maximum of 75% of the initial deposit from new shares being created and bought, can be directly traded into wBTC and held by the fund. For the percent to rise above 75%, a vote must pass.*

### **Selling wBTC**

When the community is asking for a vote in the Gorilla Ecosystem chats, or if the team feels it is a good selling opportunity, a vote will be made to decide how much of the wBTC reserve should be sold, and paid out to shareowners.

amount of wBTC per shareholder = total amount of wBTC / total amount of shares

(profits are paid out in MIM(wBTC is sold into MIM and paid out to investors))