Covered USDC strategies: loss cover
Optional loss coverage through OpenCover, priced as a small in-vault premium.
Choosing coverage
On the first wizard step you choose Standard or Covered. A covered strategy invests on Base only, so the wizard skips the networks step. You can still fund it from any supported network. The deposit bridges to Base like any cross-chain deposit.
Before your first covered strategy, you sign a one-time message that acknowledges OpenCover's terms. The signature is stored per wallet, so you are not asked again.
A covered strategy holds covered vaults only, and it cannot use Increase or Reduce, so a full close is the only way to take capital out. Rebalancing and closing work as they do on a standard strategy.
Cover capacity is one shared pool, and Earn checks it once, at your funding deposit. If the pool holds less than the amount you want to cover, Earn shows how much remains, and you can start a smaller strategy or wait. Earn can also switch off new covered strategies for a time. Existing covered strategies keep running and stay covered.
The premium
A covered vault is a wrapper around an existing Morpho vault. Your deposit passes through the wrapper into the vault. The shares you hold are the wrapper's shares, standard ERC-4626 tokens in your wallet.
The wrapper charges the premium, 1.05% per year, as it accrues, so you never send a separate payment. The premium is inside the share price that every figure is read from. The strategy page labels the headline rate Net APY and shows the premium to date as Premium paid. The Coverage by OpenCover card in the Manage tab shows the rate and the projected cost.
The premium is separate from the rebalance fee. See Fees and gas.
When cover starts
Cover activates 24 hours after your first deposit. Until then the strategy earns yield, but a loss is not covered. The badge on the strategy page reads Cover pending, and the Manage tab shows an "Activates in" countdown.
What cover is
Cover is a third-party product from OpenCover, under OpenCover's own terms. Earn does not underwrite it. Cover does not remove risk, and it is not a deposit protection scheme. See Security and audits.