Insurance Fund (Metavaults)

Peapods Metavaults are protected by an Insurance Fund, designed to provide a safety buffer in the event of unexpected losses or bad debt events.

Fund Size & Backing

• The Insurance Fund is backed by a minimum reserve of $200,000.

• These funds are reserved specifically for the purpose of risk mitigation across all active Metavaults.

• Governance (via vlPEAS votes) may choose to increase this minimum reserve threshold, but it can never be lowered below $200,000.

Purpose & Scope of Use

• The Insurance Fund is strictly limited to covering bad debt scenarios incurred by any Metavault.

• Decision-Making Authority:

  • Deployments from the Insurance Fund must be approved by either:

    • A vlPEAS governance vote, or

    • The Peapods Finance core team, if urgent action is required.

Limits of Protection

• The Insurance Fund is capped by its available balance.

• Once depleted, no further coverage is available until additional funds are allocated.

• The Insurance Fund does not guarantee against all losses, but instead provides a structured safety net to minimize systemic risk.

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Disclaimer The Insurance Fund should not be relied upon as a guarantee of repayment or full coverage for all participants. Users assume the edge-case risk that losses may exceed the available balance of the fund.