> ## 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.

# Protected Balance Vault

> Custodial contract for user principal

The `protected_balance_vault` acts as a secure custody layer for the principal stablecoins deposited by users when opening a protection position.

## Core Responsibilities

* **Secure Custody**: Holds the principal collateral during the duration of an active position.
* **Engine Exclusivity**: Only the authorized `protection_engine` is permitted to instruct this vault to move funds.

During position expiration or revocation, the `protection_engine` directs this vault to return the funds directly to the user's wallet.