Policyholders are the people who purchase the insurance policy. Each insurance has an effective period, and policyholders are eligible for compensation if the policy is activated during the effective period.
If the required collateral amount falls below the outstanding insurance amount, policyholders are eligible for a return. A high payoff, for example, could set off such a scenario. The unprotected portion owing to a lack of collateral will be automatically reimbursed to policyholders' wallets every week until there are sufficient collateral deposits to cover the outstanding policies.