A covered strategy combines Earn's auto-rebalancing behavior with optional loss coverage provided through OpenCover. You select this coverage when creating the strategy.
- Choose coverage at creation. Select Covered when creating the strategy; the choice cannot be changed later.
- Pay through the vault. The annual premium is 1.05% and is deducted inside the vault.
- Read net values directly. APY and value figures already account for the premium.
- Wait for activation. Coverage begins 24 hours after the first deposit.
- Check availability. Covered strategies use Base and covered vaults only, subject to available coverage capacity.
Choose a coverage type
Earn supports two strategy types: Standard, which does not include optional loss coverage, and Covered, which includes loss coverage from OpenCover. OpenCover is an onchain coverage provider that works with underwriters to offer protection against specified onchain risks.
Funding, rebalancing, and closing follow the same workflow for both types. A Covered strategy is restricted to Base and covered vaults.
| Property | Covered strategy behavior |
|---|---|
| Coverage provider | OpenCover |
| Supported network | Base only |
| Eligible vaults | Covered vaults only |
| Availability | Subject to available coverage capacity |
| Change after creation | No; the coverage choice is fixed |
Coverage depends on capacity being available through OpenCover. If that capacity is full, a new covered strategy may need to wait before coverage becomes available.
Selecting Covered does not change how you fund, rebalance, or close the strategy. It changes the eligible network and vault set, adds the coverage premium, and introduces the activation period.
The coverage choice remains fixed for the life of the strategy. You cannot switch an existing strategy between Standard and Covered.
Understand the premium
The coverage premium is handled inside the covered vault rather than through a separate payment:
| Item | Behavior |
|---|---|
| Premium rate | 1.05% per year |
| Payment | Charged inside the vault |
| Displayed APY and value | Already net of the premium |
| Strategy page | Displays the headline rate as Net APY and the premium paid to date under Coverage |
| Rebalancing fee | Charged separately from the coverage premium |
Because the premium is deducted before the vault share price is measured, you do not need to subtract it from the APY or value shown by Earn. Net APY is the rate after the premium, while Coverage shows how much premium the strategy has paid to date.
The coverage premium does not replace the rebalancing fee. See Fees and gas for how that separate fee works.
When coverage begins
Coverage activates 24 hours after the first deposit. During that period, the strategy continues earning normally, but its coverage is not yet active. The strategy page displays a countdown showing when activation will occur.
The 24-hour activation period starts with the first deposit, not when the strategy is created.