Core Vault 1 - UnderwriterPosition #742

Underwriters in Risk Harbor V2 underwrite every protocol in the vault. The Risk Harbor Automated Market Maker (AMM) handles pricing and ensures that Underwriters are not overexposed to any particular pool in the vault. Each vault has its own Risk Aversion parameter which governs how willing the vault is to enter leverage and take on additional risks. This vault’s risk aversion parameter is Risk-On, signaling that risk aversion is relatively low. Underwriters will earn higher yields by underwriting a larger amount of protection while taking on greater risk. \ \ Operating leverage signals the ratio of outstanding protection liability to underwriting capital. The higher the operating leverage r...View all