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# Treasure

The Treasury section is a fundamental element of the financial architecture of the Samurai Cipher Token and serves as a strategic reserve fund for the ecosystem.

Treasury's main objective is to ensure the financial sustainability of the project, preserve capital, finance future initiatives, and create a long-term foundation for the development of the ecosystem, regardless of market conditions.

Unlike other investment areas of Samurai Cipher Token, Treasury is primarily focused on preserving capital, rather than maximizing profitability.

To minimize volatility and market risks, all Treasury assets are stored exclusively in stablecoins. Structurally, this section is presented below in Figure 11.

<figure><img src="/files/EQpZgc0Jfu4Ap5pLGaOX" alt=""><figcaption></figcaption></figure>

<p align="center"><strong>Figure 11 - Block diagram of the Treasury section</strong><br></p>

#### Treasury Structure

The Samurai Cipher Token treasury is divided into two main levels:

**Level 1** — Untouchable Кeserve Fund.

**Level 2** — Ecosystem Development Fund.

This structure allows you to simultaneously ensure a high level of financial security of the project and create additional opportunities for the development of the ecosystem.&#x20;

#### The Untouchable Reserve Fund

The basis of Treasury is a reserve fund consisting of four equivalent independent pools. The main task of the reserve fund is to create a financial safety cushion for the project and protect capital from unforeseen market events.

**The structure of the Untouchable Reserve Fund**

The untouchable reserve fund is divided into:

<table data-header-hidden><thead><tr><th valign="top"></th><th valign="top"></th></tr></thead><tbody><tr><td valign="top"><strong>Pool</strong></td><td valign="top"><strong>Share of capital</strong></td></tr><tr><td valign="top">Reserve pool No. 1</td><td valign="top">25%</td></tr><tr><td valign="top">Reserve pool No. 2</td><td valign="top">25%</td></tr><tr><td valign="top">Reserve pool No. 3</td><td valign="top">25%</td></tr><tr><td valign="top">Reserve pool No. 4</td><td valign="top">25%</td></tr></tbody></table>

Each pool is an independent element of the asset storage system.

#### Storage Policy

For maximum security, all backup pools are placed on separate cold wallets. Each backup pool:

* Uses a hardware wallet from a separate manufacturer.
* Is linked to a separate device.
* It is not used for daily operations.
* Is intended exclusively for long-term storage of reserve capital.

Only the official software of the corresponding hardware wallet is allowed to be installed on devices used to store backup pools. This approach significantly reduces operational and technical risks, as well as provides a high level of protection for ecosystem assets.

#### Ecosystem Development Fund

The second Treasury level is designed to finance the long-term development of the Samurai Cipher Token. This level consists of three specialized funds:

* Tokens Fund.

Purchase and accumulation of Samurai Cipher tokens.

* Airdrops Fund.

Reward early supporters, partners, and holders of Samurai Cipher Token.

* Charity Fund

Charitable and social initiatives.

#### The mechanism of formation of the Development Fund

The main source of replenishment of development funds is the capital gain of Core Treasury in excess of the established reserve level. A target value (Base Reserve) is set for the reserve fund. For example, the established reserve volume is 500,000 USD, the actual size of the reserve fund is 550,000 USD, in this case: 500,000 USD remains an inviolable reserve, and 50,000 USD is considered Excess Capital.

**Allocation of excess capital**

When excess capital appears, it is distributed as follows:

80% goes to development funds, 60% of these funds goes to Tokens Fund, 20% to Airdrops Fund and 20% to Charity Fund. For example, if the amount of excess capital is USD 50,000, then USD 40,000 (80%) is distributed as follows:

<table data-header-hidden><thead><tr><th valign="top"></th><th valign="top"></th></tr></thead><tbody><tr><td valign="top"><strong>Fund</strong></td><td valign="top"><strong>Monetary amount</strong></td></tr><tr><td valign="top">Tokens Fund</td><td valign="top">24 000 USD</td></tr><tr><td valign="top">Airdrops Fund</td><td valign="top">8 000 USD</td></tr><tr><td valign="top">Charity Fund</td><td valign="top">8 000 USD</td></tr></tbody></table>

The remaining funds are used to increase the size of the untouchable reserve fund.

#### Formation of Treasury funds

The main sources of  Treasury replenishment are:

* Profit from liquidity pools.
* Profit margin from IPO/ICO.
* Profit from the Spot category.
* Profit from the Real Sector category.
* Other sources of income of the Samurai Cipher Token ecosystem.

#### The purpose of Treasury

Treasury is the financial foundation of Samurai Cipher Token and ensures the long-term sustainability of the ecosystem, capital preservation, financing of new investment directions, support for retrodrop strategies, development of the project infrastructure, financing of social initiatives, protection of the project during periods of market instability.

The multi-level structure of Treasury allows you to simultaneously create a reliable reserve fund and generate capital for the further growth of the ecosystem. In combination with the SCT token Buyback mechanisms, the project's investment directions and the profit reinvestment system, Treasury acts as one of the key elements of Samurai Cipher Token's long-term strategy.


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