Insurance Capital Utilisation
"Supplied ETH is used for insurance" - a former human turned telegram bot
Maximum Available Cover is calculated by a predefined formula. Capital Pools design disallows withdrawing Capital and/or depositing more Premium if that action would result in a situation where the maximum payout coil exceeds the maximum cover.
Because the deposited Premium flows into the Capital Pool, while the Maximum Available Cover stays the same, space to either withdraw some of the capital supplied or purchase additional coverage is freed.
Last modified 1yr ago