# Risk assurance

ClickOptions ensures that every option trade executed on the platform is **collateralized and settled in real time**.\
A multi-layer protection model secures client payouts while enforcing strict exposure controls.

### 1. ClickVault (Primary Risk Pool)

* All option contracts are backed by the **ClickVault**, a capital pool funded in USDT/USDC.
* Participants include approved market makers, community contributors, and ClickOptions itself.
* Collected premiums are automatically credited to VaultCapital.
* Profits and losses are allocated pro-rata among contributors based on their equity share.
* **Important**: Market Makers do not control Vault assets directly; allocation is automated under ClickOptions’ margin and exposure rules. (see [Margin](/trade/margin.md) section)

### 2. Capacity & Coverage Gates

ClickOptions continuously monitors Vault exposures.

* **Capacity Gate (L1)**: when utilization reaches the cap, ASK quotes on the exposed side are disabled; only partial fills and BID (closing) remain.
* **Coverage Gate (L2)**: if unrealized Vault losses ≥ VaultCapital, exposed side quotes are halted entirely.

Together, these mechanisms ensure the Vault never exceeds its ability to honor payouts.

See [Margin](/trade/margin.md) for details on Coverage Gates

### 3. Insurance Layer – *Atlas Assurance LLC* (in pipeline)

A dedicated insurance partner, **Atlas Assurance LLC**, strengthens protection for traders.

* A fixed percentage of collected premiums is allocated to Atlas Assurance.
* The insurer also engages in **reinsurance strategies** to diversify and mitigate risks.
* This creates an additional safety net beyond VaultCapital.

### 4. Treasury Reserves

Over time, ClickOptions builds its own **treasury buffers and reserves**.\
These serve as a final backstop in case of market gaps or systemic events.

### Settlement Waterfall

1. **ClickVault Capital** (market makers + community + ClickOptions + premiums)
2. **Insurance Layer** (*Atlas Assurance LLC*, with reinsurance strategies)
3. **ClickOptions Treasury Reserves**

At each stage, sufficient collateralization is maintained to support full payout obligations.

### Transparency

* **Vault monitoring**: real-time exposure controls and utilization caps
* **Insurance**: a fixed % of premiums is allocated to Atlas Assurance LLC
* **Treasury reporting**: reserves disclosed in quarterly platform updates

With this layered model, traders know their option payouts are secured by **collateral Vault capital, external  insurance protection, and ClickOptions reserves**.


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