> For the complete documentation index, see [llms.txt](https://docs.goldlink.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.goldlink.io/lending/insurance.md).

# Insurance

Insurance is a safety measure designed to offer more protection to lenders in the event of a default.

Each borrower pool has an insurance account. On every block, a governance approved percentage of the pool's interest is diverted to the insurance account. Initially, this amount will be set by the GoldLink  Team, but this can be modified via governance in the future.

The current approved parameter for insurance is 5% for liquidations and