> For the complete documentation index, see [llms.txt](https://docs.tidal.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.tidal.finance/how-to-use-1/cover-premium-distribution.md).

# Premium Distribution

* **90%** of the cover premium is paid to the cover provider
* **5%** of the cover premium is paid to the guarantor pool 
* **5%** of the cover premium is paid to the temporary treasury 

*\*\*Temporary treasury funds will not be utilized at initial launch. The cumulative reward could be used for the risk management and assessment committee and initial payout pool as the size of the fund grows.*

![](https://lh4.googleusercontent.com/JBEXJuq-dgt99sV_7Fa5Sc4Dd_3SAPj9oqYNHP6QnGaU-HpMVQbtatDnrCTR0Jct1dTMTS_V5GlXrfM_6RcsRN1GqkpQW31H5hMy0xFNVl9PQr0aStjn_kg1mCBJYvd55i7n3ySe)