# Fixed and rolling reserves

Checkout.com may hold some of your funds in reserve.
We use this reserve to cover chargebacks, refunds, and other costs Checkout.com is liable for if you're unable to cover them yourself.
The funds are held in your [_Collateral_](https://www.checkout.com/docs/funds-management/manage-funds/balances.md#Collateral_balance) balance.

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## Fixed reserve

We hold a fixed amount of funds in reserve for the duration of your Checkout.com contract, unless we inform you otherwise.

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## Rolling reserve

We hold a percentage of each payment that we process, deducted from your [_Pending_](https://www.checkout.com/docs/funds-management/manage-funds/balances.md#Pending_balance) balance, and release it back to your [_Available_](https://www.checkout.com/docs/funds-management/manage-funds/balances.md#Available_balance) balance when the reserve period lapses.

For example, you have a rolling reserve of 10% with a 30-day reserve period.
On day 1, you accept a payment of 10 GBP with Checkout.com.
We hold 1 GBP in reserve and credit the remaining 9 GBP to your _Pending_ balance.
On day 31, we also release the 1 GBP to your _Available_ balance.

The rolling reserve mechanism continues for the duration of your Checkout.com contract, unless we inform you otherwise.

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## Reserve period

How long we hold the reserve for depends on the terms of your Checkout.com contract.
Because the details may be different for each merchant, we communicate these to you individually.

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## Reserve reviews

Checkout.com may periodically review your reserve amount, rate, or reserve period, depending on:

- The volume of transactions you process
- The financial health of your business
- The number of refunds and chargebacks raised against you
- Any other factors that affect your risk profile

As a result of such reviews, we may adjust the terms of your reserve, in accordance with the terms of your Checkout.com contract.