Agio Docs
  • โš—๏ธAgio protocol
  • Overview
    • ๐Ÿ‘จโ€๐Ÿ”ฌTeam
    • ๐ŸŽฅHistory
    • ๐Ÿ’กHow does Agio work
  • Product Guides
    • ๐Ÿช„How to use Agio
    • ๐ŸงชMechanism
  • Fundamentals
    • ๐Ÿช™$AGIO the token
      • ๐ŸงฒValue accrual for $Agio holders
        • Staking $AGIO to earn protocol fees in USD or ETH with a yield redirection mechanism
        • Sudden total claim
        • Shielding pools
  • ๐Ÿ“ŠTokenomics
  • ๐ŸŒSocials
  • Security and Decentralization
    • ๐Ÿ›ก๏ธTreasury covers
    • ๐Ÿ”ฌBad Coverage
    • ๐Ÿ”ญGood Coverage
    • ๐Ÿ‘‘Protocol Ownership
  • ABOUT
    • ๐Ÿ”ฐQ & A
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  1. Security and Decentralization

Bad Coverage

Bad coverage is a term coined by Agio. It defines a state where the treasury supports more assets than it could provide if all assets went down to -100%.

Several layers of security are implemented in case of a Bad Coverage

  1. 1. The second layer of the treasury would come into play. It holds the same amount of $AGIO as the first layer and this funds would be used to transfer additional $AGIO into the main treasury to mitigate the bad coverage.โ€จ

  2. In the unlikely worst case scenario where the users have withdrawn all the $AGIO stored in the treasury, the platform will stop taking fees and will automatically return the assets including the coverage of losses in $AGIO at this point in time to its users. In the aftermath, Agio would create a new main treasury from the funds available in the second layer treasury and the users are free to re-deposit their assets for coverage. No user funds are therefore affected as it is a fully decentralized protocol.

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Last updated 2 years ago

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