# Amulet Safety Fund

## Claiming Payouts

Payouts from the Amulet Safety Fund ("**ASF**") is a 4-step process that is executed when the trigger conditions (i.e. Current Price < Trigger Price) are met:

<table data-header-hidden><thead><tr><th width="57"></th><th width="167"></th><th></th></tr></thead><tbody><tr><td>1</td><td>Triggered</td><td>The vault is suspended when its Current Price falls below Trigger Price.</td></tr><tr><td>2</td><td>Retrieving Funds</td><td>The vault attempts to retrieve residual assets from the underlying external pool.</td></tr><tr><td>3</td><td>Funds Retrieved</td><td>Residual assets are retrieved for users to withdraw from the vault.</td></tr><tr><td>4</td><td>Ready to Withdraw</td><td>Retrieved residual assets and claim payout (if any) are ready for users to withdraw.</td></tr></tbody></table>

## Capacity

Capacity is the amount of financial coverage allocated from the ASF to a given vault. Any claim payout to be made for an affected vault will be limited by its allocated capacity. Allocated capacity is calculated as follows:

```
Allocated Capacity = Total Capacity x Tier Quota x Default Ratio
```

Where:

* `Total Capacity` represents the total amount of funds in the Amulet Safety Fund.
* `Tier Quota` represents the Security Factor according to the underlying protocol's security level. At launch, the factor for the highest security level of Tier One is set at 200%, Tier Two is set at 100%, and Tier Three is set at 100%. The quota set for each tier may be adjusted subject to ongoing review and changing market and risk circumstances.
* `Default Ratio` represents the Global Factor which is set at 5.5% for all vaults at launch and subject to ongoing review.

## Shield Cost Calculation

```
Shield Cost = (Risk1 + Risk2 + ...RiskN +/- Bundle Discount) +/- Discretionary Adjustments
```

`Shield Cost` refers to the portion of the vault’s Base APY charged for financial coverage by the `Amulet Safety Fund`. It is calculated according to the sum of individually priced `Risk(s)` based on market research data and may be adjusted by `Bundle Discount` according to identifiable correlation risk(s); and by `Discretionary Adjustments` according to rate-on-line market benchmark and stakeholder risk appetite.

{% hint style="info" %}
Click [here](/documentation/product/yield-with-built-in-protection/fees.md) for the latest fee schedule.
{% endhint %}


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.amulet.org/documentation/product/yield-with-built-in-protection/amulet-safety-fund.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.