# 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.

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Click [here](https://docs.amulet.org/documentation/product/yield-with-built-in-protection/fees) for the latest fee schedule.
{% endhint %}