Custody and the founder

The pool does not hold its own bank. This page states who holds what, what the operator can and cannot do, and the founder arrangement in full as a related-party statement.

If you read one page before contributing, read this one.

Why a founder-owned charter

Standard Reserve charters cannot currently be bought or transferred: the charter auction has not started and founding charters are soulbound. So the pool cannot acquire a charter of its own, and the contract path that would buy one into its own custody has nothing to buy.

Instead the pool buys branches on charter #729, which the founder bought in the founding sale for 1.2397 ETH and holds in the founder's wallet. A charter holds at most ten branches: the founder keeps the first, the pool funds the other nine.

Where everything sits

Asset	Held by
ETH contributed before activation	The pool contract, refundable
ETH waiting to be deployed after activation	The founder wallet, counted separately from the founder's own funds by the wallet's delegate code, returnable to the pool contract
The branches, and the balance they earn	Inside the Reserve, under charter #729
$STANDARD backing payouts, withdrawals and fees	The pool contract

The founder wallet is the custodian. That is the central fact of this arrangement, and it is not custody by a contract.

What the keeper can and cannot do

An automated keeper operates the custodian wallet through delegate code with fixed limits. It can:

• buy licences, within the price ceiling and daily count
• retire branches, within the dissolution rules
• file valuation reports
• settle rounds

It cannot withdraw funds or make arbitrary calls.

The founder's own key can always override that delegate code. Contributing therefore means trusting the founder not to misuse it. No contract prevents it, and this documentation does not claim otherwise. The limits are real and they are onchain; the override is also real.

Changing the keeper's limits requires seven days' public notice.

The founder arrangement

Stated in full, as a related-party statement.

Item	Terms
Founder entitlement	The balance an untouched one-branch founding charter would hold, measured from the mint. Every branch earns the same, so any untouched charter shows it.
Pool entitlement	Everything the charter holds above that benchmark: the nine branches the pool funds, and what they earn.
Fee	10% of realised profit — what retirements bring in above the cost of the branches retired, after recorded costs and earlier losses. It vests for 30 days and is clawed back by later losses while unclaimed.
Operating costs	Transaction costs are borne by the operator, not charged to members.
Purchase of #729	Deferred: no payment and no liability in version 1.
Where repayment ranks	Paid only from a disclosed share of realised surplus, after funded claims and essential reserves. Never from contributed principal or reserves. No date is promised.
After repayment	The charter is committed to the pool and transferred into its custody when the Reserve allows transfers. Until then the founder's wallet remains its holder and operator.

How the entitlement split works

The benchmark is observable rather than negotiated: because every branch in the Reserve earns an identical share of the daily issue, the balance an untouched one-branch charter holds can be read off any untouched founding charter. The founder's share is that figure. Everything above it belongs to the pool.

This is a ledger convention, not an upstream fact. The Reserve has no branch-level owner and no branch transfer interface, so it cannot enforce the split, and it cannot isolate the pool's branches from actions taken by the founder's wallet.

How the purchase price would be set

There is no payment and no liability in version 1, so there is nothing currently ranking ahead of members on this account.

When it is settled, the price will reference the median of arm's-length sales of founding charters over a stated window, once the Reserve makes them transferable, normalised to a one-branch charter and excluding the branches and balances the pool funded — so contributors do not pay twice for capacity they financed. If too few sales occur to establish a median, the terms are revisited rather than estimated.

Because charters cannot be transferred and the charter auction has not started, there is currently no demonstrated market price for a founding charter. An advertised floor or an unsold listing would not establish one.

The related-party disclosure

The wallet holding charter #729 is the pool's custodian, is operated by the keeper, and is the party to be repaid for the charter. The same party sets the valuation policy and files the valuation reports.

Treat any eventual charter valuation as a related-party transaction: it needs a stated method, disclosed evidence, a recorded window and a named scope. The method above is designed to be checkable rather than asserted, which is the point of referencing observed arm's-length sales instead of an appraisal.

What the code review covered

The review of the pool's code was internal. An adversarial audit was performed with executable proof-of-concepts, its findings fixed in the same revision and replayed by a rescreen suite, and a subsequent independent review's findings were answered. That is prior work for an external reviewer to confirm or dispute. It is not an independent audit of the deployment, and it says nothing about the Reserve's own contracts, which this project has not reviewed.

Public contributions are not open. See Status and limits for what remains outstanding.