> For the complete documentation index, see [llms.txt](https://vnx.gitbook.io/vnx-global/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://vnx.gitbook.io/vnx-global/institutional/reserve/investment-policy.md).

# Investment Policy

*Reserve assets stay conservative, short duration, and tightly concentration-limited.*

## Overview

VNX applies a narrow investment perimeter to reserve assets. The goal is capital preservation, immediate redemption support, and stable backing for VCHF and VGBP.

## Core rules

* **100% backing stays first** — reserve assets must continue to cover stablecoins in circulation.
* **Short duration only** — reserves stay in bank deposits with maturities up to two days unless the BMA gives prior consent.
* **Currency match** — reserve assets remain matched to the liability currency unless the BMA approves otherwise.
* **Concentration limits** — single-counterparty exposure is capped.

## How this supports redemptions

The investment policy works with the liquidity buffer:

* At least **10%** of reserves stays in T+0 cash.
* A further 90**%** stays redeemable within **48 hours**.
* Anything outside that perimeter needs prior regulatory approval.

## Related

* [Reserve Management](/vnx-global/institutional/reserve/reserve-management.md)
* [Liquidity Buffers](/vnx-global/institutional/reserve/liquidity-buffers.md)
* [Stablecoin Specific Risks](/vnx-global/institutional/risk/stablecoin-specific-risks.md)
* [Regulatory Framework](/vnx-global/institutional/regulatory/regulatory-framework.md)