Rodeo Insurance Fund
Rodeo has implemented a Protocol Insurance Fund, the purpose of the insurance fund is to compensate lenders in the rare chance of a shortfall event (such as exploit, oracle risk, bad debt case)
The risks associated with a shortfall event are diminished through the implementation of the various security measures of Rodeos "Security First" approach, the Protocol Insurance Fund acts as an emergency fund only deployed in the case where a user experiences a loss of funds due to an outlier event.
All fees accrued and collected by Rodeo are deposited into the lending pool until withdrawn by Rodeo, these fees will be utilized as the basis of the Protocol Insurance Fund used to secure the protocol.
If a shortfall event does occur, the Insurance Plan will provide coverage for affected users, with the amounts, method of reimbursement and parties eligible for reimbursement to be determined by Rodeo, and in the future, governance voters
Note: the Insurance Fund does not cover liquidation events or external manipulation events outside of the control of Rodeo (such as chainlink oracle manipulation, block chain exploits, etc)