# Initial Reserve initial\_reserves = initial\_price \* initial\_supply \* reserve\_ratio Initial reserves are determined by setting the initial price, initial supply, and reserve ratio. Increasing the initial supply, price, or reserve ratio will increase the required initial reserves. Decreasing any of those three parameters will decrease the initial reserve deposit required for initialization. The initial reserve is a capital requirement for launching a bonding curve and therefor may be a constraint on deployment. For example, a team may have a fixed budget for initial capitalization of the bonding curve, in which case the initial reserve should not be more than that amount.
High initial reserves

Increasing initial supply, initial price, and reserve ratio all increase the requirement for initial reserves.

Low initial reserves

Decreasing initial supply, initial price, and reserve ratio all decrease the requirement for initial reserves.

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