Covered strategies
A covered strategy is an auto-rebalancing position with optional loss coverage, provided through OpenCover.
Choosing coverage
When you create a strategy, you choose Standard or Covered. Covered is optional and fixed for the life of the strategy, so choose it up front; everything else, funding, rebalancing, and closing, works the same. Covered strategies run on Base only and can only hold covered vaults, and coverage is subject to available capacity, so a new one may have to wait when capacity is full.
The premium
The premium is 1.05% per year, charged inside the vault, so you never send a separate payment. Because it comes out before your share price is measured, every APY and value Earn shows for a covered strategy is already net of it, with nothing to subtract yourself. The strategy page labels the headline rate Net APY and shows the premium paid to date under Coverage. The premium is separate from the rebalancing fee; see Fees and gas.
When coverage starts
Coverage activates 24 hours after your first deposit. Until then the strategy earns normally, with a countdown to activation on the strategy page.