# Reserve, Settlement and funding composition

Understand what the account holds, how an operation is funded, and what a dollar presentation means.

Canonical: https://docs.bankeiz.com/reserve-settlement/
Reviewed: 2026-10-25; coordinated packages 129.0.0; ruleset 127.0.0.

## Two sources, one supported total

Reserve retains its admitted funded denomination and backing. Settlement retains exact Phi with its supported deterministic dollar presentation. The account presents their supported sum while keeping their sources distinct. Local revaluation can change the dollar presentation of unchanged Phi; it does not change the units, ownership, funding source or authority to spend.

**Read each figure in its own scope**

| Figure | What it represents | What it does not establish |
| --- | --- | --- |
| Reserve | Admitted funded denomination and backing. | A new credit from a card-success screen. |
| Settlement | Exact Phi with deterministic valuation. | An executed cash sale at the displayed value. |
| Account total | The supported Reserve and Settlement sum. | Investment value or unconfirmed received Notes. |
| Received Notes | Admitted originals retained for the recipient. | Confirmed account credit available for another spend. |

## Automatic funding

Supported ordinary account operations use Reserve first and Settlement for any remainder. The approved request and resulting sources retain the exact composition. A mixed allocation is not converted into an unexplained total. When a review displays both components, check the total and each unit before approval.

**Composition survives the operation**

1. Review: Exact amount and recipient.
2. Allocate: Reserve first, Settlement remainder.
3. Execute: Use the admitted sources once.
4. Retain: Keep each component in the result.

## Notes preserve their rail

A Reserve Note carries the original funded dollar denomination and accepted backing Phi. A Settlement Note carries exact accepted Settlement Phi; its printed dollars describe value at creation. A Settlement Reserve Note carries both. Changing artwork, a title or a displayed dollar figure cannot change the signed funding. Every issue, handover, claim and credit must preserve the original components.

## Do not count the same value twice

Funding committed to a Note or a backed asset cannot remain separately spendable. A consumed Note remains historical evidence rather than another available holding. Investments, Showcase valuations, account cash, outstanding Note funding and received-but-uncredited Notes have their own presentation roles. Adding them together without their source and availability rules invents value.

> **Use the review for the operation**
>
> A chart, old quote or saved screenshot cannot supply current financial authorization. The exact review and supported execution path govern the requested action.

## Inspect the source of an amount

1. **Open the financial record** — Use the account history or the operation’s retained result.
2. **Read the components** — Inspect actual Reserve/Settlement amounts and their original relationships.
3. **Distinguish calculation** — Calculated pooled FIFO attribution explains an admitted basis; it does not rewrite an allocation recorded by the original transfer.
4. **Keep the original** — Retain the supported receipt/source when independent inspection or later recovery matters.

- [Inspect records](https://docs.bankeiz.com/records/)
- [Understand valuation and liquidity](https://docs.bankeiz.com/market-value/)

## Implementation sources

- [Value and source rules](https://github.com/kojibai/reality-grade-banking/blob/6c5d582/docs/current-function-boundaries.md)
- [Account parsing and exact component checks](https://github.com/kojibai/reality-grade-banking/blob/6c5d582/src/receiz/shared-wallet.ts)
- [Local valuation of admitted holdings](https://github.com/kojibai/reality-grade-banking/blob/6c5d582/src/receiz/local-wallet-valuation.ts)
- [Note units and funding composition](https://github.com/kojibai/reality-grade-banking/blob/6c5d582/docs/settlement-note-contract.md)

## Related documentation

- [Fund the next operation](https://docs.bankeiz.com/funding/)
- [Create, address and receive original Notes](https://docs.bankeiz.com/notes/)
- [Valuation, backing, price and liquidity](https://docs.bankeiz.com/market-value/)
- [Inspect receipts, ownership and source history](https://docs.bankeiz.com/records/)