# Basic Mechanics

#### **i. ISC Issuer: Issues or Recalls ISC Loans**

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

The ISC Issuer is responsible for issuing and recalling ISC Loans to the ISC Reserves. The size of each ISC Loan are determined a variety of factors, such as the liquidity and price of ISC, as well as the reliability of the ISC Reserve.

#### **ii. ISC Reserves: Provides Liquidity to the Digital Asset Market**

<figure><img src="/files/VHaAbvcRfXPBpF81oHrh" alt=""><figcaption></figcaption></figure>

The ISC Reserves provides a continuous liquidity for ISC to the Digital Asset Market by buying and selling ISC as appropriate. The cash generated from each ISC is used to implement its ISC Reserve Basket. This system ensures that there is always enough liquidity for users to be able to buy or sell ISC.

#### **iii. ISC Reserves: Implements the ISC Reserve Basket**

<figure><img src="/files/W1D81T2V97JgA2nPU1LV" alt=""><figcaption></figcaption></figure>

ISC Reserves interface with the Real World Asset Market to buy and sell the assets required to implement the ISC Reserve Basket for each ISC in circulation. The assets purchased by the ISC Reserves are used to maintain the ISC Target Price.


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