How does the Reserve Balance work?

At Dash.Fi, we prioritize the stability and security of every transaction made through our platform. Reserve balances play a crucial role in our ability to give the highest spending limits in the industry. 

These reserve balances, mandated by our banking partner, ensure you have consistent daily spending limits along with a 72 hours grace period with uninterrupted service to remediate bounce payments.

How much is the reserve balance?

3x your peak daily spend volume within the current quarter.   

For example, if your peak daily spend for a single day in Q1 is $300,000 then your reserve balance would be $900,000 for both Q1 and the Q2.  

How often are reserve balances reviewed? 

Every quarter, reserve balances are reviewed based on the highest spending days within that period and the previous quarter, ensuring that our cardholders always have sufficient coverage to support their transactions. 

Example of reserve balances requirements increase with Increasing ad spend quarter over quarter.

Let's assume your reserve balance is $900,000 at the end of Q1. Your baseline reserve balance would remain at $900,000 as long as you didn’t spend over $900,000 in Q2.     If your daily spend increased in Q2 to $400,000 your new reserve balance requirement would be $1.2m, thereby establishing the new baseline for Q3.  In other words, $1.2m would remain in reserves until the end of Q3.  

Example of reserve balances being released after decreasing ad spend quarter over quarter.

Let's assume your reserve balance is $900,000 at the end of Q1.   If your daily spend decreased in Q2 to where your peak daily spend volume was only $100,000 then your new reserve balance requirement would be $300k, thereby establishing the new baseline for Q3.  At the end of Q3, you have the option to request a reserve balance return of $600,000. 

Where do I see my reserve balance?

Your balance will be shown on your rewards statements.  Additionally you can request a one off reserve balance statement by contacting support@dash.fi

What days are excluded from reserve calculations?

We excluded all prime days, black friday, and cyber monday from our reserve calculations.  We will take your next highest spend days for the calculation.