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For underwriters

Back the reserve, earn the premiums.

Supply the collateral that backs payouts, and earn the premiums that cover buyers pay.
Your capital sits in a non-custodial vault.
Only a verified proof can move it, never an operator and never an admin.

Why underwrite here

Yield, without handing over custody

You earn premiums for taking real default risk.
The protocol, not a counterparty, holds the rules.

Premium yield

Cover buyers pay premiums to be protected. As an underwriter you earn that flow for backing the reserve.

Non-custodial by construction

Your deposit lives in a vault that only a verified settlement can pay out. There is no operator key and no pause-and-pay.

Solvency enforced on-chain

Total cover can never exceed your reserve, checked on every purchase. You are never short by construction, not by trust.

Your capital

How the reserve is protected

Three guarantees stand between your deposit and a wrongful payout.

Only a proof can move it
There is no getter that pays from public state and no admin override. The reserve moves to a payee only when the settlement contract verifies a valid proof on Stellar.
Cover is capped at the reserve
Every cover purchase is checked against the collateral. The aggregate of sold cover can never exceed what you have funded, so payouts cannot outrun the reserve.
Claw-proof, freeze-proof collateral
The factory rejects collateral assets that can be clawed back or frozen. Your reserve is held in assets nobody can pull out from under it.
A non-default cannot drain you
If the issuer paid on time, no proof exists and nothing settles. You only ever pay genuine, proven shortfalls, sized by the published formula.
Withdrawals

Liquidity on your terms

Open when nothing is settling.
Locked only by an in-flight settlement, never by an operator.

Deposits and withdrawals are permissionless. Outside an active settlement you can add to or pull from the reserve freely, subject only to the solvency floor that keeps sold cover backed. There is no lockup imposed by a manager, because there is no manager.

sold cover ≤ reserve · Σ payouts ≤ collateral
The two invariants the vault enforces on every action. Withdraw down to the floor that keeps outstanding cover backed; never below it.
The risk

Said plainly

Underwriting default protection means you pay valid defaults. When a covered bond genuinely misses a coupon, the reserve pays the cover buyers, and that is the risk you are compensated for through premiums. Parallar does not hide that, it makes it precise: payouts are sized by a published formula and authorized by a proof, so you are never paying more than what was proven owed, and never paying a default that did not happen.

This is a hackathon build on Stellar testnet, not a launched market. There is no real capital at stake yet. Read exactly what a proof does and does not guarantee ›

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