Basic Transaction Flow

Interaction between participants in Tidal

Pool Creation

  1. Preset pools with different risk levels will be formed at launch. Protocols would have to meet the risk quantification assessment criteria set for each pool;

  2. Define pool parameters - minimum reserve ratio, maximum leverage exposure, premium pricing correlation and premium distribution;

  3. Token holders can propose any new protocol to introduce on TIDAL plat- form, and the governance will approve the protocol according to risk assessment metric.

Provide Reserve Capital to Mutual Cover Pool

  1. Select the mutual cover pool to provide reserve capital from TIDAL user interface;

  2. Users can provide liquidity to either Guarantor reserve or leveraged reserve: • Provide Guarantor reserve - Select one protocol to provide liquidity;

    • Provide leveraged reserve - Select multiple protocols to provide liquidity, set the exposure level of each protocol;

  3. Connect and unlock the wallet with the required assets for the mutual cover pool selected;

  4. Select and confirm the amount of tokens to stake to the mutual cover pool;

  5. Confirm and send the transaction;

  6. The appropriate amounts of TIDAL governance tokens (as protocol incentives for providing reserve capital) will be generated and deposited to the same wallet address used to send reserve capital.

Buying Mutual Cover on TIDAL Pool

  1. Buyer can search through the available mutual cover pools and the available amount for purchase, and purchase cover at the stated price;

  2. The billing period is aligned with each pool’s rebalance cycle;

  3. Connect the wallet with the required funds for the purchase;

  4. Confirm and send transaction;

  5. The purchased cover tokens will be deposited to the buyer’s wallet.