Valid Ranges

Valid ranges for token supply, decimals, and other protocol parameters

Overview

Reserve Folio enforces specific ranges for token supplies, decimals, and other parameters to ensure safe arithmetic operations and prevent overflow/underflow conditions.

It is the job of governance to ensure these ranges are maintained throughout the protocol’s operation.

Token Supply Limits

All tokens in the Reserve Folio ecosystem are assumed to have a maximum supply of 1e36.

Asset Type	Max Supply	Notes
Folio Shares	1e36	Governance must prevent supply growth beyond this limit
Folio Collateral	1e36	Applies to all tokens held by the Folio
StakingVault Shares	1e36	Applies to staking vault tokens
Underlying/Rewards	1e36	Applies to staking vault underlying and reward tokens

The 1e36 supply limit is enforced to prevent arithmetic overflow in internal calculations involving D18 and D27 precision multipliers.

Decimal Limits

Folio Collateral

Maximum: 27 decimals

Tokens used as Folio collateral must have 27 or fewer decimals.

This limit ensures that calculations with D27 precision multipliers don’t overflow.

StakingVault Tokens

Maximum: 21 decimals

Tokens used as StakingVault underlying or rewards must have 21 or fewer decimals.

The lower limit accounts for additional precision needed in staking calculations.

Summary Table

Component	Decimals Limit	Reason
Folio collateral tokens	≤ 27	D27 precision arithmetic
StakingVault underlying	≤ 21	Additional staking calculation precision
StakingVault rewards	≤ 21	Reward distribution precision

Rebalance Parameter Ranges

Exchange Rates (Rebalance Limits)

D18{BU/share}

Valid Range: (0, 1e27] (exclusive of 0)

Precision: 18-decimal fixed point

Exchange rates for rebalance limits define the basket units per share ratios.

Basket Weights

D27{tok/BU}

Valid Range: [0, 1e54] (inclusive of 0)

Precision: 27-decimal fixed point

Basket weights define how much of each token comprises one basket unit.

Token Prices

D27{UoA/tok}

Valid Range: (0, 1e45] (exclusive of 0)

Precision: 27-decimal fixed point

Prices are denominated in Unit of Account (typically nanoUSD) per token quanta.

Price Range Restrictions

The maximum allowable price range for a token is 1e2 (100x).

This means an auction can span at most 4 orders of magnitude between start and end prices.

While 100x price ranges are technically allowed, non-degen Folios should use much tighter ranges for optimal execution and to minimize MEV exposure.

Fee Limits

TVL Fee (Management Fee)

Annual TVL Fee Range

Minimum (DAO Floor): 15 basis points (0.15% annually)

Maximum: 10% annually

The DAO takes a cut with a minimum floor of 15 bps. If the TVL fee is set to exactly 15 bps, then 100% of the inflation goes to the DAO.

Mint Fee

Mint Fee Range

Minimum (DAO Floor): 15 basis points (0.15%)

Maximum: 5%

The DAO always receives at least 15 bps of the mint value. If the mint fee is set to exactly 15 bps, then 100% goes to the DAO.

Fee Floor Configuration

The universal 15 bps fee floor can be lowered by the DAO:

• Globally across all Folios
• On a per-Folio basis (only lower, never higher)

Governance Safety Guidelines

1. Monitor Folio Supply

   Continuously monitor that Folio share supply remains well below 1e36.

2. Validate Token Decimals

   Before adding tokens to a Folio, verify decimal counts:

   • Folio collateral: ≤ 27 decimals
   • StakingVault tokens: ≤ 21 decimals
3. Set Conservative Price Ranges

   Use price ranges that will contain market prices even after timelock delays.

   Avoid max 100x ranges unless absolutely necessary.

4. Validate Basket Weights

   Ensure basket weight calculations don’t approach overflow limits.

   Remember: weights can be up to 1e54 in theory, but practical values should be much lower.

Arithmetic Safety

Overflow Prevention

The ranges above are carefully chosen to prevent overflow in these scenarios:

• Token supply (1e36) × D27 (1e27) = 1e63 < type(uint256).max
• Price (1e45) × Token amount (varies) with proper decimal handling
• Basket weights (1e54) used in ratio calculations

Related Documentation

Unit System

Learn about the unit system and precision multipliers

Token Compatibility

Understand which ERC20 tokens are supported

Rebalancing

How ranges are used in rebalancing operations

Fees

Detailed fee structure documentation