> ## Documentation Index
> Fetch the complete documentation index at: https://docs.coverfi.space/llms.txt
> Use this file to discover all available pages before exploring further.

# Floor Shield Engine

> Floor-price protection contract with reserve-backed payout and principal exit

The `floor_shield_engine` lets a user define a floor price for a protected amount. If the expiry price is below that floor, the position becomes claimable up to a configured maximum payout cap.

## Responsibilities

* Quote a floor shield from a fresh oracle observation.
* Validate duration and floor price.
* Move protected principal into the protected vault.
* Collect premium through the reserve vault.
* Lock maximum payout capacity.
* Settle after expiry using an oracle observation at or before expiry.
* Let the owner claim payout and withdraw principal according to status.

## Main methods

```txt theme={null}
initialize(admin, protected_vault, reserve_vault, oracle_adapter, protected_asset, payout_asset, premium_asset)
quote_shield(amount, floor_price, duration_seconds)
create_shield(user, amount, floor_price, duration_seconds, partner)
settle_shield(caller, shield_id)
claim_payout(user, shield_id)
withdraw_principal(user, shield_id)
get_shield(shield_id)
get_user_shields(user)
pause(admin)
unpause(admin)
```

## Flow

```mermaid theme={null}
sequenceDiagram
  participant U as User
  participant F as Floor shield engine
  participant P as Protected vault
  participant R as Reserve vault
  participant O as Oracle adapter

  U->>F: create_shield()
  F->>P: deposit_from()
  F->>R: collect_premium_from()
  F->>R: lock_payout_capacity()
  U->>F: settle_shield() after expiry
  F->>O: get_price_at_or_before()
  F->>R: settle_position()
  U->>F: claim_payout() when claimable
  U->>F: withdraw_principal()
```

## Boundary

Floor shield is an experimental product contract. Treat it as separate from the core protection engine when scoping mainnet launch or audit work.