Fund Pool

DeFi insurance needs a big-enough fund pool to exploit the Law of Large Numbers. Lack of liguiditymakes it difficult to bootstrap the project from scratch while providing low-cost, wide-coverageinsurance.

The Fund Pool allows for the collection of funding to be used as collateral for covers and claims whilstalso allow the collection of premiums, to be distributed to fund providers via $lPST.

It is the cornerstone of Marquee's sustained business model, whereby it bridges between fundproviders and insurance cover purchasers and would accrue the law of large numbers to assist in thegrowth of the eco-system.

The fund pool manages the assets of insurance purchasers 8 2 fund providers.The fund pool is a ERC20 smart contract which stores the premium and cover purchases that havebeen deposited. The pool also manages the flow of funds to the lPST token value as a means to accruethe premia that is entitled to the lPST token holders (Fund Providers).

When a user purchases insurance, the fund pool will:

➡️Issue an ERC721 token to the user to represent their claim on the pool.

➡️Collect the insurance premium g hold it within the fund pool.

When a user provides their funds to become a 22 Fund Provider for insurance purchasers, the fundpool:

➡️Collect their assets g hold them within the & fund pool.

➡️Issue an LP token ($lPST) to the 2 fund provider to represent their assets in the pool.

➡️Distribute premia payout via the increased valuation of $lPST.

Fund Pool Occupancy Rate and Liquidityissue prevention

In order to ensure that there are enough funds in the pool to pay for all insurance claims, Marquee hasset a limit on the funds occupied by insurance contracts from the fund pool. When the maximum limitis exceeded, new users can no longer purchase any insurance contracts. The maximum occupancylimit of Marquee's fund pool is 80%.

Definition of fund pool occupancy rate: