# sUSDat Dynamic Reserve

The key advantage of digital credit is the real-time transparency of its collateral value. Thus, the reserve dynamically allocates between Treasuries and digital credit based on the Loan-To-Value (LTV) of our digital credit strategy.

LTV = Total Liabilities Including All Obligations Senior to STRC / Value of Strategy's Bitcoin NAV

A lower LTV signals a stronger Bitcoin & Equity buffer, while a higher LTV signals increased leverage and risk.

* Lower LTV: greater digital credit exposure for higher yield.
* Higher LTV: shift toward Treasuries for enhanced stability.

<table><thead><tr><th width="383.021484375">LTV</th><th>sUSDat STRC Allocation</th></tr></thead><tbody><tr><td>&#x3C;28.57%</td><td>100%</td></tr><tr><td>&#x3C;33.33%</td><td>80%</td></tr><tr><td>&#x3C;40.00%</td><td>60%</td></tr><tr><td>&#x3C;50.00%</td><td>40%</td></tr><tr><td>&#x3C;66.67%</td><td>20%</td></tr><tr><td>>100%</td><td>0%</td></tr></tbody></table>

This adaptive model strengthens reserve stability under stress and optimizes yield during normal conditions.