# Reserves **Reserves are balances of underlying assets, stored internally within the protocol, which automatically protect users from bad debts. Reserves can also be withdrawn or used through the governance process.** **The reserve fund is generated in two ways: the difference between the interest paid by the borrower and the interest earned by the underlying asset supplier is included in the agreement as a reserve fund. Second, the liquidation process uses and can increase protocol reserves based on target reserve levels set by governance.** --- # 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://lenen-protocol.gitbook.io/lenen-protocol/proper-indicator/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.