The rolling reserve is a guarantee deposit aiming at protecting both you and Lemon Way from potential payment cancellations/card chargebacks/SDD returns.
The rolling reserve is defined in your contract and depends on Lemon Way risk analysis of your business model/activity (long delivery periods, cards rebill, etc.). It is a way to ensure that there is enough funds on your Enterprise environment to cover up potential cancellations.
The rolling reserve is in general expressed as a percentage over a number of months.
A 3% rolling reserve over 6 months means that, at a given moment, 3% of the total Money-In amount (all payment instruments) over the last 6 months is blocked on your Enterprise environment.
This guarantee is rolling, i.e. that it evolves in real time in your Enterprise environment.
The max out on your Enterprise environment at a given moment can be consulted from any payment account of your Enterprise Back-Office, (Bank information tab), and is calculated as follow:
TOTAL MAX OUT = TOTAL MONEY-IN AMOUNT LAST X MONTHS - ROLLING RESERVE AMOUNT LAST X MONTHS