Dynamic Capital Adjustment
Reserve providers are allowed to withdraw reserve capital, as the intial launch, there is no contraints on withdraw other than a up to 14 days pending period. As the ecosytem grow, limitation such as limiting the withdraw amount when the sold cover amount is below a certain threshold of the reserve providers' capital, will be implemented to stablilize the supply and demand.
The maximum leverage of exposure will be dynamically adjusted over time depending on the risk to hacking and other forms of attacks, as well as the number of protocols covered by mutual cover pool. The leverage should be increased as more protocols become mature on the market.