Insurance

In an effort to enhance risk management across various markets and vaults, the protocol is actively seeking partnerships with established insurance providers. These collaborations aim to introduce a comprehensive insurance framework tailored specifically to the unique characteristics of MORE markets.

As negotiations progress, it is anticipated that select markets will qualify for insurance coverage. This coverage is designed to safeguard lenders by ensuring they are compensated promptly if a premium borrower's loan is liquidated and results in debt. In the event of such liquidations, lenders will have the ability to initiate claims directly through the protocol, bypassing the issuance of a debt token. The insurance partner will then assume responsibility for the debt recovery process, conducting these efforts off-chain, which simplifies the resolution for lenders.

In markets where insurance coverage is implemented, a modest portion of the lenders’ yield will be allocated as premium payments to the insurer. This fee structure supports the maintenance of the insurance guarantee, securing lenders against potential losses and contributing to the overall stability and attractiveness of MORE Markets.