Underwriter fees

This fee is calculated by the premium engine which uses the current available liquidity, the current utilization of the deposited liquidity, and policy duration as key inputs. Underwriting fees are immediately deposited into the liquidity pool. This increases the value of the liquidity token (iUSDC), functioning as a payout to all underwriters proportional to their share of the pool.

Protocol fees

A flat 5% fee is charged over the underwriter fees for each insurance purchased. This settlement fee goes to the protocol for product development.