# Reserve sizing

Tactyc calculates your fund‘s expected reserve ratios instead of having you enter it. This ensures there is no “left-over” capital and enables you to “build up” to the ideal reserve ratio from more granular assumptions.

Follow-on reserves are calculated based on:

* Number of graduations (this comes from the Sector Profile)
* Follow-on strategy defined in each allocation. This includes:
  * Follow-on check sizes amounts
  * How many rounds will your fund be follow-on for an allocation?
  * How often will you be following-on for this allocation?

### **How to define follow-on strategies?**

Follow-on strategies are defined at each **Allocation.** In the **Follow-on Strategy** section of the allocation, you can set the follow-on amounts, or choose to maintain your pro-rata ownership.

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### **My calculated follow-on reserve % is too low (or too high), how do I adjust this?**

If the fund’s reserve ratio doesn’t line up with your expectations, here are some strategies to use:

* If your reserves are too low, increase the follow-on check sizes or follow-on participation %
* If the above method still doesn’t give you your expected reserve ratio, revisit the **Sector Profiles** and adjust the **Graduation Rate** and **Exit Rates***.* Tactyc will only follow-on into graduated companies. So if you adjust your model’s graduation rates, you can increase or decrease the number of follow-ons demanded in your portfolio. Please keep in mind this is a “macro” change and implies your view on the sector may have now changed as well.


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