> ## 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.

# Reserve Vault

> Liquidity pool for covering stablecoin claims

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.

## 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.

## Key Functions

### `lock_capacity()`

Reserves liquidity to guarantee a potential payout, reducing the vault's "available" balance while maintaining its "total" balance.

### `release_capacity()`

Unlocks liquidity when a position expires naturally.

### `pay_claim()`

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