> For the complete documentation index, see [llms.txt](https://docs.pearlswap.ai/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.pearlswap.ai/how-it-works/reserve.md). # What the reserve means The invariant that makes PRL on Hyperliquid worth PRL, and how it is maintained. > Circulating supply on Hyperliquid ≤ confirmed native PRL held in escrow on Pearl. Every guardian evaluates that inequality itself, from its own view of both chains, before signing anything that increases the left side. ### How each direction maintains it **Inbound.** PRL is released on Hyperliquid only after the matching coins are confirmed in escrow on Pearl, to the depth the configuration requires. Releases are ordered and counted against the deposits that justify them, so a deposit is credited once and a replayed or duplicated proposal finds the ledger already satisfied. **Outbound.** Escrowed coins leave Pearl only against PRL that has returned to the treasury on Hyperliquid, with a destination the sender signed for that transfer. The payout consumes specific coins, and a competing payout for the same transfer must consume the same ones — so the chain can accept at most one. ### Failure is a stop, not a drift A guardian that computes a shortfall does not carry on with a warning. It stops signing and says why. Because a quorum is two, one guardian stopping is enough to prevent the release it refused; there is no path where the invariant is broken quietly by the component that is supposed to be watching it. ### What it guarantees, and what it does not **It guarantees redeemability.** Anyone holding PRL on Hyperliquid can take the native coin; anyone holding the coin can go the other way. Par is maintained by arbitrage that anyone can perform, not by a promise. **It is not a price.** The escrow does not create buyers or sellers. Depth comes from the market on Hyperliquid. **It does not cover the swap float.** While a swap runs, the asset you paid is held briefly by the swap service before it becomes PRL in escrow. That exposure is bounded by a cap on the total in flight, disclosed on screen, and is separate from the reserve. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## 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, and the optional `goal` query parameter: ``` GET https://docs.pearlswap.ai/how-it-works/reserve.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. 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.