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

# Understanding Hakifi Insurance

### Status

| Status     | Description                                                                        |
| ---------- | ---------------------------------------------------------------------------------- |
| Available  | The status after opening the contract successfully.                                |
| Claimed    | The system has completed the payment to the user's wallet.                         |
| Refunded   | The system has refunded the margin to the user's wallet.                           |
| Canceled   | The contract is canceled. The system has refunded the margin to the user's wallet. |
| Liquidated | The contract is liquidated.                                                        |
| Invalid    | The contract is not available when exceeding a safe price range.                   |

### Terms

| Terms                                                | Definition                                                                                                                                                                                                                                     |
| ---------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| Market Price                                         | <ul><li>The current Market Price of the trading pair.</li><li>Prices are shown with real-time data.</li></ul>                                                                                                                                  |
| Claim Price                                          | <ul><li>The covered price</li><li>When the Market Price reaches the Claim Price, the system activates the payment.</li></ul>                                                                                                                   |
| <p>Liquidation Price (Liq. Price)</p><p><br><br></p> | <ul><li>Depends on Claim Price and Period.</li><li>When the Market Price reaches the Liq. Price, the contract is liquidated immediately.</li></ul>                                                                                             |
| Refund Price                                         | <ul><li>The Refund Price is calculated based on the set of conditions including the open price.</li><li>When the Market Price is between the Refund Price and the Claim Price at the Expiration Time, the user's margin is refunded.</li></ul> |
| Close Price                                          | <ul><li>The price at contract closing.</li><li>The Close price is determined at the time the contract changes from "Available" to another status.</li></ul>                                                                                    |
| Open Price                                           | <ul><li>The price at contract opening.</li></ul>                                                                                                                                                                                               |
| Cover Amount                                         | <ul><li>Amount of assets to be covered.</li><li>Units of USDT or Assets.</li></ul>                                                                                                                                                             |
| Refund Amount                                        | <ul><li>The amount to be refunded.</li><li>The Refund Amount is automatically refunded when refund conditions are met or when users decide to close the contract before expiration time.</li></ul>                                             |
| Claim Amount                                         | <ul><li>The Claim Amount is automatically transferred to the user's wallet after the Market Price reaches the Claim Price.</li><li>With a certain margin, The shorter the contract period, the greater the ratio of Claim Amount.</li></ul>    |
| Margin                                               | <ul><li>The amount that users need to deposit to open a contract successfully</li><li>The margin amount ranges from 2% to 10% of the cover amount</li></ul>                                                                                    |
| Period                                               | <ul><li>The term of the contract depends on the margin rate and Claim Price.</li></ul>                                                                                                                                                         |
| Open Time                                            | <ul><li>The time that the contract is activated.</li></ul>                                                                                                                                                                                     |
| Close Time                                           | <ul><li>The time that the contract is closed.</li></ul>                                                                                                                                                                                        |
| Expire Time                                          | <ul><li>The time that the contract expires.</li></ul>                                                                                                                                                                                          |
| Bull                                                 | <ul><li>Protect your assets/positions against the risk of price increasing.</li></ul>                                                                                                                                                          |
| Bear                                                 | <ul><li>Protect your assets/positions against the risk of price decreases.</li></ul>                                                                                                                                                           |