Mark MossChief Bitcoin Strategist Satsuma | Partner BTCOppFund | ArchLending | BlockwareTeam | 100M+ YouTube

The Four Layers of Financial Liquidity

10 Sept 2026 · 0 min

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In this segment, Mark Moss presents a pyramid model for personal financial liquidity. He defines four hierarchical layers: Layer 1 (L1) is operating income or cash flow, the foundational source of liquidity; Layer 2 (L2) consists of cash and cash equivalents, providing immediate liquidity; Layer 3 (L3) represents liquidity that can be accessed by borrowing against or otherwise leveraging other owned assets; and Layer 4 (L4) is the final, undesirable layer where one must sell assets to obtain cash. The model emphasizes that individuals should aim to stay within the lower layers and only consider higher layers in extreme circumstances.

I think of it sort of like a pyramid, and L1 down here is what I call operating income or cash flow. Now behind that, layer 2 would be cash and cash equivalents. All right. Then on top of that, layer 3 would be liquidity that I can potentially access against other assets that I own. And then on top of that, layer 4, the final layer, the one I never want to reach unless I absolutely have to, is of course selling the assets.