Glossary
Common terms and their definitions
Term
Definition
Protection
Protection against the loss of an asset
Policyholder
A user who purchases protection.
Underwriter
A user who stakes their assets in protection pools
Loss threshold
The minimum loss that must be surpassed for a claim to be valid
Minimum Capital Requirement
The minimum amount of capital that underwriters will need to have staked in a pool to pay out the outstanding policy yield
Claim token
A token that can be redeemed for the underlying token through a DeFi protocol
Underlying token
The claim token redeems to the underlying token.
Underwriting token
The token that the protection is underwritten in
Default ratio
The ratio of claim tokens to redeemed underlying tokens that define the loss threshold
Payout ratio
The ratio at which the user will be paid per token covered if they file a valid claim
Expiration date/block
The expiration block number and estimated date of expiration
Last modified 5mo ago
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