> For the complete documentation index, see [llms.txt](https://docs.fida.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.fida.finance/fida-policy/policy-contract.md).

# Policy Contract

The Fida Policy Contract serves as a hub keeping track of each individual insurance policy. It is a contract that is identified uniquely by a single element, namely `policyId`.

The Fida Contract Minting Policy produces two distinct types of tokens:

* The policy token, distinguished by the `POLICY_ID` token name.
* The Fida card token, identified with the `CARD` token name.

These tokens are exclusively minted during the policy creation process and can be considered as non-fungible tokens (NFTs). The second token facilitates the creation of multiple Fida Card Tokens, with the quantity determined by a policy parameter. This mechanism serves to distribute shares among investors during the selling process.

When creating a Fida Policy, the broker designates the quantity of Fida Card Tokens to be generated, along with the collateral amount in Ada. This process distributes the risk behind backing the policy to each Fida Card holder.

To ensure easy discoverability of the Fida Policy, a beacon token is deployed to a contract address during its creation. The beacon token is minted by a System Minting Policy which is configured with two parameters:

* `SystemGovernance` - representing the public key hash of the authorized wallet permitted to mint tokens.
* `SystemMagic`- serving as the system seed enabling the generation of diverse system families.

The currency symbol, generated by the System Minting Policy and encapsulated with `SystemId`, acts as a system identifier. Multiple Fida systems can operate simultaneously in the same location, with each one distinguished by a unique `SystemId`.

Understand the [policy life cycle by reading the next page](/fida-policy/policy-life-cycle.md).


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