# Protocol Reserve The Protocol Reserve is an asset pool that accrues value from borrower interest payments, as determined by the reserveRate set by governance. Each market has its own reserve. The Reserve has several functions: 1. As the second line of defense against bad debt events after the Safety Module has been slashed 2. To provide additional withdrawal liquidity to LPs in low-liquidity situations 3. As general funds for governance to use as needed The Protocol Reserve is displayed in the Markets section. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.granite.world/protocol-mechanics/safety-mechanisms/protocol-reserve.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.