Capital Pools

A Capital Pool is used for a single policy. Capital Suppliers can supply assets (ETH) to an individual Capital Pool and have a risk exposure that is limited to one single policy. By depositing assets (ETH) in a Capital Pool, Capital Suppliers start to receive a yield in the form of Premiums, which are paid in ETH by Cover Buyers in exchange of being protected against the risks of said policy.

Premium Deposits made by Cover Buyers are consumed as time passes-by and transferred to the Capital Pool. In the event of a loss within the scope of the policy, a claim can be filled by the Policy Holder and the Capital Pool is used to make the payout.