> For the complete documentation index, see [llms.txt](https://docs.aozo.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.aozo.io/aozo-earn/transparency/portfolio-composition.md). # Portfolio composition How AOZO Earn balances strategies and available liquidity. ### Strategy and liquidity Assets may be held as cash, placed in strategies designed for more direct withdrawals, or allocated to strategies that can take longer to exit. The portfolio may retain a liquidity buffer rather than invest every available USDC. {% hint style="info" %} The value shown for a strategy is not the same as cash available immediately. A lending position may have value while the market has less liquidity available to withdraw. Slower strategies can take longer to exit. {% endhint %} The mix of cash, faster-withdrawal strategies, and slower strategies can change. Actual strategies, allocation limits, and available liquidity depend on the current product configuration. ### Junior risk buffer The product design includes an optional junior pool, represented by jrUSD, alongside the main depositor position. When enabled, junior capital may absorb eligible economic losses first, up to the amount available and under the product rules. This is a governed process, not an automatic payout. If the buffer is exhausted, remaining losses may affect the main depositor position. The junior pool may receive a share of product fees and returns from its own strategies. In return, junior capital takes greater loss risk. It may have separate deposit and withdrawal limits. This is a limited, conditional risk buffer. It is not third-party insurance. It does not guarantee principal or yield. It does not provide cash for ordinary liquidity shortages or guarantee faster withdrawals. {% hint style="warning" %} Do verify available capital, coverage, and terms before use. {% endhint %} Read [Liquidity and withdrawals](/aozo-earn/transparency/liquidity-and-withdrawals.md) and [Key risks](/aozo-earn/risks-and-security/key-risks.md) before participating. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation by asking a question. Perform an HTTP GET request on the following URL with the `ask` and `goal` query parameters: ``` GET https://docs.aozo.io/aozo-earn/transparency/portfolio-composition.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is what the user is ultimately trying to achieve, the reason they need the answer. Sharing it helps GitBook give you a better, more relevant answer. A goal is most helpful when it describes the outcome the user wants rather than restating the question. For example, with `ask=how do I create an API token`, a goal like `automate deployments from our CI pipeline` lets GitBook tailor the answer to that use case. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.