> For the complete documentation index, see [llms.txt](https://safu-protocol.gitbook.io/safu/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://safu-protocol.gitbook.io/safu/safus-eli-10.md).

# Safu's ELI 10

Imagine a big amusement park with cool rides, games, and lots of tickets that let you play (this is the crypto world). Some people want to enjoy the park but worry about losing their tickets or having a bad experience if something breaks. The park offers a system to protect these people, and it works like this:

#### **Step 1: Buying Insurance**

People in the park can buy **insurance** by trading some of their coins or tickets for a special safety sticker. This sticker says, “If my tickets or coins are lost because of a big problem, I’ll get replacements from the park.”

But here’s the twist: instead of just paying money outright, the park also uses the **yield**—the extra coins or tickets that people earn when their unused tickets are saved in the park’s safe.

* If you want insurance, you **sacrifice a small part of your yield**. It’s like saying, “Take some of my extra tickets every day to keep me safe.”

#### **Step 2: The Yield Pool**

When people buy insurance, the coins they pay (or the yield they sacrifice) go into a big pool called the **SAFU fund**. This pool is used to help anyone in the park who loses their tickets or if a ride breaks.

#### **Step 3: Risk-Takers and Yield Earners**

Here’s where it gets interesting: Some people in the park **sell insurance** instead of buying it. These people are called **risk-takers**, and they’re like the brave heroes of the park. They agree to cover the costs if something goes wrong for someone else. In return, they get a big part of the **yield** from the insurance buyers.

* Example: Imagine you earn 10 extra tickets every day from your saved tickets. If you buy insurance, you might only keep 8 tickets while 2 tickets go to the risk-takers as a reward for protecting you.

But if something really bad happens (like a hacker sneaks into the park), the risk-takers might have to give up some of their tickets to cover the damage.