Capital exposure

For businesses

Risk	How it is handled
The pool cannot pay	Every contract is fully collateralised when sold. Your maximum payout is locked in the pool until settlement.
The rate moves beyond your limit	Not covered. Choose the limit to match the move you need covered.
Your bank's rate differs from the reference rate	Not covered. See Reference and executable rates.
Settlement is delayed	Your payout waits with its reserve; nothing is lost. See Data failures.

What you can lose: the premium and fee you paid.

For underwriters

Risk	How it is bounded
Payouts on contracts you back	At most your reserve for each contract
Many contracts settling on the same move	Contracts in one pool share a pair and direction, so a large move affects all of them. Your total loss is at most everything you have reserved.
Underpricing	Your premium depends on the engine's fair price and the pool's markup. The engine refuses extreme prices but cannot remove model risk.
Capital locked	Reserved capital cannot be withdrawn until its contracts settle.

What you can lose: everything you have reserved. Free money is never charged for payouts.

For pool creators

The same as underwriters for your own capital. Your pool's terms decide what risk it takes on: see Configure parameters.