# Insurance Insurance is an additional safety measure designed to offer more protection to lenders in the event of a default. The insurance fund will maintain pools of capital per strategy to allow for greater strategy diversity and risk isolation. Additionally, the insurance fund will grow by taking a percent of the borrow cost and liquidation premiums, so the most risky and high-yield strategies should also have the largest funds. In the event of a default, the insurance fund will automatically be dispersed to lenders attempting to make up for any loan loss. The current insurance premium on borrows and liquidations is 5% and 7.5% respectively. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.goldlink.io/risk/insurance.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.