Cover Pricing

Coverage token price will be determined by the combination of risk assessment process and market forces driven by supply/demand or coverage cost vs. LP’s return

Coverage token price will be determined in two overlaid processes: • Base price is determined by meeting certain expected return of LP’s capital, which will be set up at the beginning of each expiration date cycle based on risk assessment and coverage utilization. • Actual price will be determined on transaction by transaction bases as a base price +/- adjustment, where adjustment is determined based on over or under utilization of available coverage.