> For the complete documentation index, see [llms.txt](https://duce.gitbook.io/duce/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://duce.gitbook.io/duce/getting-started/duce-aggregated-reserve-mechanism.md).
# Duce Aggregated Reserve Mechanism
**Deposit Lifecycle**
Investor deposits are securely recorded in an encrypted ledger using FHE. These deposits, combined with the reserve, form a consolidated investment pool. This aggregated reserve is dynamically managed by smart contracts that determine how funds are allocated to the investment strategy.
**Blind Investment Strategy**
Duce employs a blind investment strategy where the aggregated funds are deployed without revealing individual deposit details. This strategy is executed through FHE circuits that:
* Process encrypted data to determine optimal investment allocation.
* Compute yield outcomes in real time.
#### **Algorithmic Overview of Duce** Dynamic Adjustment Protocol
A dynamic adjustment protocol ensures that the distributed yield meets the guaranteed 1.2× return. (see Sample code below) outlines how the system:
* Monitors yield accrual.
* Adjusts bonus distribution in real time if the aggregate yield is temporarily insufficient.
* Ensures that each investor receives at least their principal, with any additional bonus proportionally adjusted.
```solidity
function distributeYield() internal {
uint totalYield = computeYield(); // FHE-based yield computation
for (uint i = 0; i < investorCount; i++) {
uint idealReturn = investors[i].deposit * 120 / 100;
if (totalYield >= idealReturn) {
payInvestor(investors[i], idealReturn);
totalYield -= idealReturn;
} else if (totalYield >= investors[i].deposit) {
payInvestor(investors[i], totalYield);
totalYield = 0;
} else {
break; // Insufficient funds: wait for additional yield accrual
}
}
}
```
---
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