Loss events & payouts
When something breaks, this is where you collect.
Loading loss events…
What counts as a loss event
A loss event is declared on-chain by the protocol oracle (DeclareLossEvent) with a magnitude % and a claim window. Holders whose coverage was active at declaration can then process a claim for up to their covered share. These are the kinds of outcomes that get declared:
Underlying lender exploit
A smart-contract hack or exploit of a lending market the vault is allocated to (e.g. Save/Solend, MarginFi, Kamino) that impairs deposited principal.
Bad debt / insolvency
An integrated lending market accrues unbacked bad debt or becomes insolvent, so the vault can't redeem its position at par.
Stablecoin depeg
A stablecoin held or lent by the vault loses its peg by a material margin, marking down the vault's redeemable value.
Oracle / liquidation failure
A price-feed failure or stale oracle drives mispriced liquidations that damage vault value.
Strategy accounting loss
The vault's redeemable value falls below principal because of a strategy-level loss, regardless of cause.
Devnet · closed beta — declaration is discretionary, not an insurance contract