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The reserve_vault is the liquidity backbone of CoverFi. It holds funds provided by liquidity providers and accumulated premiums, ensuring there is enough capital to pay out valid claims.

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Core Responsibilities

  • Capacity Locking: When a position is opened, the reserve vault locks the maximum possible payout capacity for that specific position. This guarantees solvency.
  • Capacity Release: If a position expires without a trigger, the locked capacity is released back into the available liquidity pool.
  • Claim Disbursal: If a position is successfully claimed, the vault disburses the calculated payout amount to the user.

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Key Functions

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lock_capacity()

Reserves liquidity to guarantee a potential payout, reducing the vault’s “available” balance while maintaining its “total” balance.

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release_capacity()

Unlocks liquidity when a position expires naturally.

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pay_claim()

Disburses the payout to the user and permanently deducts the amount from both the total and locked balances.