How it works underneath
Cover for the hours you were exposed, and no others.
Insurance sells months because months are easy to bill. Skim bills seconds, because on Arc a second is cheap enough to settle. You are covered for the three hours your funds sit in that vault, at the size you actually held, and the premium comes out of what those hours earned.
The rules
- Enter a vault with a position. Cover switches on that second, for the size of the position.
- Yield accrues on the position by the second from a reserve the vault operator funds. The premium is a slice of it, by the second, into the cover pool.
- Exit, and every second is settled on the way out: position plus yield, less premium. Cover ends with the position.
- A covered loss on a position that is in is paid from the pool by the verifier.
- Vault A
- 6.80% yield · 0.78% premium · 11% of yield
- Vault B
- 4.20% yield · 0.46% premium · 11% of yield
What you see without a wallet
An example position that breathes as its holder tops up and draws down, with the stream, the slice and the numbers running on the same rules. It is labelled example wherever you act on it. Connect, and your own position on chain replaces it.
What is real and what is next
Positions, the per-second premium, the pool and the settlement on exit are on chain. Yield comes from a reserve the operator funds at a posted rate; routing it from a real vault is the next step. The metering that makes per-second cover possible is already here.
Why Arc
A premium priced per second only makes sense where settling it costs less than the premium. On Arc a payment costs a fraction of a cent, so cover can be metered by the second, skimmed from yield as it accrues, and switched off the instant the position closes.
- Network
- Arc
- Settled in
- under 0.5s
- A settlement costs about
- $0.001