# nStables Reserves Management ## Overview When a user purchases nStables, they pay fiat currency or USD Stablecoins for a value equivalent to the issued nStables. Assets received from purchase issuing constitute the **nStables Reserve** ("NR"), which acts as a collateral for all nStables issued through such mechanism. For each nStables, there is an issuance and redemption module through direct purchase and sale. With this mechanism, users can issue nStables by transferring assets (cryptocurrencies, local legal tender currency or other accepted assets) to nStables reserve and, conversely, redeem nStables by selling in exchange for assets. The nStables delivered in the issuance process are new tokens and increase the circulation of the nStables in question and the nStables returned in the redemption process reduce the nStables in circulation. ## Reserves Management Process The assets comprising the NR are managed according the Investment Prospectus for the nStable Reserve. The company will periodically inform the public of the assets contained in the portfolio that comprises the NR. The main objectives of the **nStables Reserves Management Process** are described in the following list: 1. Preserve the net worth of the reserves and mitigate the volatility in the value of nStables 2. Mitigate risks associated with investment, custody, and transfers of the reserves 3. Seek for returns to generate sustainable revenue ## Procedure & Vision nStables follow the best industry standards in its Reserves Management Process. For this reason, we take into consideration several key points to preserve collateral: * Reserves Management * nStables Reserve Investment Prospect * Risk Measuring & Risk Mitigation --- # 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://docs.nstables.fi/reserves/nstables-reserves-management.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.