Create a Claim

When a claim occurs, investors have the option to cover it using their premium pool or their deposited collateral. If they opt to cover the claim from their premium, they must deposit the required amount into the Fida policy script. Additionally, we offer a mixed alternative, allowing investors to cover part of the claim from premium and the remainder from collateral. The amount an investor must pay for a claim is proportionate to the shares they own—those with more shares need to pay more Ada for a claim.

Typically, the policy broker prepares the claim. Technically, this involves the creation of a special UTXO containing data describing the claim, such as its ID, summary, due date, and the amount required to cover it. This information is then distributed to all investors, who must choose how they wish to cover the claim—from their premium or collateral. Investors have a set period to make this decision. The system then collects the remaining claim amount from the collateral deposited in investors' scripts and transfers it to the policy script. While the claim is almost ready for collection by the policy owner, it must first be authorized by the policy authority.