Policy Funding

Policy funding occurs after the policy is created, with the policy owner paying the premium amount, which represents the cost of the policy and continues until all share units are sold.

Policy cancellation is allowed with consequences for the policy owner. In such cases, all collateral will be refunded to the investors, and the policy owner will incur a charge for the cancellation. However, the policy owner will receive a refund of the premium paid.

When an investor purchases a Fida Card, the collateral they paid is placed in their investor script. The investor has the option to passively earn income by staking the collateral, but they must agree to this and pay a small fee, which can be reclaimed upon resignation. By agreeing to stake, all other collateral deposited in the investor script is eligible for staking.

Thus, staking collateral, combined with collecting premiums from the Fida policy, serves as a method for investors to earn income.