# Protocol Reserves Reserves consist of the balance of the base or collateral asset held within the protocol, serving as a safeguard against bad debt for users. These reserves can also be withdrawn to support the development of the Swaylend protocol. Reserves are built through two main mechanisms: * The **difference between the interest** paid by borrowers and the interest earned by suppliers of the base asset contributes to the protocol's reserves * The **liquidation process** can both utilize and enhance reserves, aligning with the target reserve level established by the Swaylend team. --- # 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.swaylend.com/protocol-reserves.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.