> ## Documentation Index > Fetch the complete documentation index at: https://kamino.com/docs/llms.txt > Use this file to discover all available pages before exploring further. # Set up the Insurance Pool > Configure the loss backstop, deposit your skin-in-the-game capital, and trigger the Kamino match The Insurance Pool is the strongest trust signal you can offer depositors. Your locked capital absorbs losses before any depositor takes a hit, with public on-chain visibility of the amount. Kamino matches your deposit up to \$250K. For the conceptual treatment of the loss waterfall and the emergency withdrawal model, read [Risk primitives → Insurance Pool](/curators/vaults/concepts/risk-primitives#the-insurance-pool) first. This page is the operational walkthrough. ## Before you start You'll need: * An existing vault. If you haven't created one yet, see [Create a vault](/curators/vaults/guides/create-a-vault). * The capital you want to lock as the backstop, in the vault's deposit token. * A multisig wallet you want to nominate for the emergency-withdrawal 2-of-2 (Kamino's security council is the other signer). ## Setup steps The Insurance Pool is implemented as a dedicated farm on your vault (the `FirstLossCapitalFarm`). If your vault was created via the SDK with the standard `createVaultIxs` flow, the farm was created automatically. If not, create it now. | Method | How | | ------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | UI | Available under your vault's Insurance Pool / First Loss Capital settings | | SDK | Use `kaminoManager.createVaultFarmIxs(...)` and `kaminoManager.updateVaultFirstLossCapitalFarmIxs(...)` to create the farm and register it on the vault. See [Configure farms](/curators/vaults/guides/configure-farms#first-loss-capital-farm) for the exact instruction sequence. | | CLI | Not currently supported. Use UI or SDK. | Set the asset you'll deposit. For most vaults this is the same as the vault's deposit token, so your backstop is denominated in the same currency you're protecting. Deposit into the Insurance Pool. You receive vault shares (kTokens) which are staked into the pool. The deposited amount is visible on-chain and surfaces on Kamino's UI as a public commitment. After creation, transfer farm ownership to a multisig and add Kamino as a co-signer for emergency operations. This sets up the 2-of-2 model for emergency withdrawals. Kamino matches curator Insurance Pool deposits up to $250K. If you deposit $200K, Kamino contributes $200K, bringing the pool to $400K. The match is triggered through Kamino — contact your curator-relations point of contact when your deposit is ready. ## Withdrawal mechanisms Two paths exist; understanding both is important because they serve fundamentally different purposes. ### Normal withdrawal — 30-day cooldown Initiate a standard withdrawal to remove your insurance commitment. The mandatory **30-day cooldown** begins when you initiate; the withdrawal is a **public, on-chain signal**. Depositors and anyone monitoring the vault see that you're exiting. This is the expected path for curators winding down their commitment. The 30-day window gives depositors time to assess and react. ### Emergency withdrawal — instant, 2-of-2 multisig Emergency withdrawal exists for one purpose: **rapidly accessing Insurance Pool funds to compensate depositors after a loss event**. It bypasses the cooldown. The 2-of-2 multisig: 1. Your curator-controlled wallet 2. Kamino's security council Both must sign. Kamino's security council co-signs only when the withdrawal is for legitimate depositor compensation. Using emergency withdrawal to extract funds and avoid compensating depositors — rather than to make them whole — defeats the Insurance Pool's purpose and constitutes a breach of the curator commitment. ## The loss compensation flow When the vault incurs bad debt, compensation is **manual** — there is no automated on-chain detection. Process: 1. **Loss is socialized.** Kamino calls `socialize_loss` on klend; depositors take the hit. 2. **Assess impact.** Identify which reserve was affected and the loss magnitude. 3. **Release Insurance Pool funds.** Normal withdrawal (30-day cooldown) or emergency withdrawal (2-of-2) if urgency is needed. 4. **Snapshot affected depositors** at the loss timestamp. 5. **Distribute compensation** to affected depositors. For the full flow, see [Risk primitives → Loss compensation flow](/curators/vaults/concepts/risk-primitives#loss-compensation-flow). ## Best practices * **Run alongside Whitelisted Reserves.** The two protect different things — together they're the highest trust configuration. See [Enable Whitelisted Reserves](/curators/vaults/guides/enable-whitelisted-reserves). * **Set up before depositors enter.** A vault with an established Insurance Pool from launch is more credible than one that adds it later. * **Size the pool to depositor expectations.** Institutional depositors will look at pool depth as a fraction of vault TVL when assessing risk. ## What's next The model behind the Insurance Pool and Whitelisted Reserves. The complementary protection — restrict where vault capital can go.