> For the complete documentation index, see [llms.txt](https://docs.clearpool.finance/clearpool/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.clearpool.finance/clearpool/how-it-works/dynamic/protocol/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 Clearpool Core Team but this can be modified via governance in the future.

In the event of a default, insurance can be claimed by the pool's cpToken holders (lenders), following an auction process, which is designed to maximize the total claimable amount for lenders (see [Default](/clearpool/how-it-works/dynamic/protocol/default.md) for more information).

When a pool is closed, the insurance amount is transferred to protocol revenue, which is subsequently used for CPOOL buybacks. Please see [Revenue](/clearpool/how-it-works/dynamic/protocol/revenue.md) for more information.

The current approved parameter for insurance is: 5%


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## 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, and the optional `goal` query parameter:

```
GET https://docs.clearpool.finance/clearpool/how-it-works/dynamic/protocol/insurance.md?ask=<question>&goal=<endgoal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.

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.