Reserves are sub-divisions of the Project's total cash. Each Reserve is governed by specific rules in the Charter about what it can be used for and how it is replenished. The main Reserves are:

• Allotment: this funds the yearly distribution of tokens to associates based on their contributions.
• Base: used for essential payments that must be covered to ensure the project’s normal operations (i.e.: core expenses or non – flexible obligations).
• Credit Buyback: used to repurchase credits when there is a credit buyback request and the project’s rules allow their execution
• Tokens Buyback: used to repurchase tokens when there is a credit buyback request and the project’s rules allow their execution
• Distribution: The portion of the project’s cash set aside for paying distributions to associates, based on the number of tokens they hold.
• Flex: covers firm outflows, the allocation to the base reserve, and all flex outflows. It acts as the central pool used for both essential and flexible payments under the FlexUp Economic Model.
• Strategic: cash set aside for future needs and contingencies.