# Claim and Payout The claim and payout process in the Tidal protocol is carried out in a decentralized fashion. Starting with a claim being filed to put the relevant reserve asset into lock, the committee then approves and moves the claim to the voting process which asks TIDAL token holders to exercise their governance power. DAO will evaluate the submitted proposal and execute its decision-making power based on a heuristic approach, considering various factors including the type of claimed incidents, the coverage scope as initially agreed-upon, and the interpretation of the Tidal cover terms. Once the request is passed by DAO, the claim committee will perform the final approval and proceed to pay the damaged users in accordance with the amount being approved. At initial launch, the claim committee consists of the core dev team and security experts from halborn. With platform growth and maturity of DAO, the claim committee will be expanded and incentivized to have larger participation from the community**.** ### **Process of filing and approving a claim** 1.Cover buyer (partnered protocol team or funds) files a claim. *\*\*Must submit a claim within 3 days of the incident.* 2\. It will start a request in the Claim Assessment Committee. 3\. Claim Assessment Committee votes for the request. (all 4 votes need to pass to go to next step and the reserve pool of the claimed protocol will be temporarily locked) *\*\*There are currently 4 committee accounts. 2 from Tidal team and 2 from Halborn team. More committee members with auditing skills could be added through DAO in future.* 4\. Token holder can stake 2,000,000 TIDAL tokens to create a proposal for the payout amount, the proposal contains a trusted receiver address (committee held multisig) for the payout. *\*\*The proposal itself should contain executable code about payout details to deduct from each reserve pool (amount of USDC, amount of TIDAL, amount of guarantor token).* 5\. DAO evaluates the description of the proposal and the executable code contained in it, and votes to pass the proposal (72 hours). Current minimum voting threshold is 5,000,000 TIDAL counts and pass ratio is 50%. if Yes -> go to 6, if no -> go to 4 to re-file a new proposal. 6\. The executable code will go through “Timelock” to create a request of the approved amount and trusted address in the Claim Assessment Committee (after 24 hours of Timelock). 7\. Committee votes to approve the request. Yes -> go to 8. No -> go to 4 to re-file new proposal. 8\. Once passed, the amount will immediately be deducted from the reserve pool, and paid to the trusted receiver address held by the claim committee; and the locked reserve pool in step 3 will be unlocked. 9\. The trusted receiver will payout to the damaged user (USD amount pay to protocol team, guarantor token and TIDAL token pay to reserve providers proportionally according to their loss). ![Claim and payout diagram](/files/-Mg4M0NYwOxLa1tym4nB) --- # Agent Instructions: 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: ``` GET https://docs.tidal.finance/how-to-use-1/claim-and-payout.md?ask= ``` The question should be specific, self-contained, and written in natural language. 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.