The IL Reserve Fund is a dedicated vault designed to absorb impermanent loss shocks during liquidity provisioning.
Over time, the ILRF accumulates capital from yield cycles, enabling the protocol to:
Offset short-term liquidity discrepancies
Support the Health Index during volatility
Protect user principal from LP-related losses
Stabilize overall vault performance across market cycles
The ILRF is activated automatically through solvency triggers defined in the Health Index thresholds.
