# Good Coverage

***Good coverage*** is a term coined by Agio. It means that the treasury supports fewer assets than it theoretically could provide -100% coverage for. Following,  we present likely scenarios that could result in a ***good coverage*** :

If the price of $AGIO rises, good coverage begins to form as treasury capacity increases. The benefits of such a mechanism include:

### **Eliminate bad coverage**

When *good coverage* begins to form, it can eliminate prior bad coverage. Suppose that the treasury was in a *bad coverage* state and supported 200% of assets, then if the price of $AGIO goes up by 100% this *bad coverage* would be eliminated because the treasury now supports all positions up to -100%.

### **Increase the size of treasury coverage**

If there is no bad coverage to eliminate, Agio can increase its coverage capacity, thus letting more people deposit and increasing covered funds