Underwriters deposit USDC and earn premiums. The pool is tranched, capped per asset and per custodian, and publishes its solvency every block. If you would not underwrite it yourself with these numbers, the numbers are here for you to say so.
| tranche | loss order | premium share | exit notice | who |
|---|---|---|---|---|
| junior | first loss, up to 100% of tranche | 70% | 30 days | underwriters who have read the perils and want the yield |
| senior | only after junior is exhausted | 30% | 7 days | capital that wants a lower, steadier return |
Per asset: 12% of pool. One depeg cannot take more than an eighth of capital.
Per custodian: 25% of pool. One custodian failing pays out fully and leaves the pool standing.
Solvency floor: 1.5×. Below it, no new covers are written until deposits or expiries restore it. Existing covers are unaffected.
Caps are enforced by the contract at cover purchase. When an asset is at cap, the board shows it and the quote says "capacity full".
Everything a buyer sees, plus: every active cover's asset, notional and expiry (not the holder), the breach timers currently running, and the pool's realised loss history by peril. Underwriters can exit with notice at any time; an exit during a running breach timer is honoured after the breach resolves.
No management fee. The pool takes a fixed share of premiums for oracle and feed costs, published on the board.