Fairside
  • Overview
    • The Problem: We Lack Consumer Protection
    • The Solution: Community Aligned Coverage
    • Vision & Mission
  • Membership and Coverage
    • Membership Signup
    • Covered Assets
    • Covered Events
    • Not Covered
    • Platforms Covered
  • Claims and Valuations
    • Valuation of Loss
    • Claims Assessment
    • Claims Process
  • Capital Pool and $FAIR Token
    • Capital Pool
    • What is $FAIR?
    • How $FAIR Works
    • Benefits of Holding $FAIR
  • Technical Overview
    • $FAIR
    • Fairside network
    • Fairside Claim Process
  • Solution Design
    • Capital Pool: Bonding Curve Overview
      • Fairside Bonding Curve
      • Bonding phases
      • Funding Pool
      • Bonding Curve Formula
      • Bonding Curve Safeguards Mechanisms
    • Fairside Network
      • Fairside Network Model
      • Membership details
      • Membership fee distribution
    • Fairside Claim Process
      • Cost Share Benefits
      • Claim & appeal process
  • Resources
    • FAQ
    • Audits
    • Bug Bounty
  • Fairside SDK
  • Policies
    • Terms of Sale
    • Terms of Use
    • Privacy Policy
    • AML Policy
    • Fairside Network Guidelines and Membership Agreement
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  1. Capital Pool and $FAIR Token

Capital Pool

Imagine Fairside as a neighborhood fund where everyone pools their money together for a common good.

The more people who join—either by signing up for memberships or contributing funds—the larger the fund grows, increasing the value of everyone’s share.

However, this neighborhood fund is a dynamic ecosystem designed to breathe and adapt. If the fund experiences withdrawals or a high volume of claims, the value of everyone’s share may decrease. In such situations, a built-in mechanism incentivizes members to stay or re-capitalize the pool, fostering a sustainable, healthy, and resilient ecosystem. It grows with new contributions and membership sign-ups and becomes smaller with withdrawals and payouts. The fund's adaptability, uplifted by dynamic incentives (fluctuating monthly rewards) and robust risk modeling from the traditional insurance industry, provides resilience and long-term sustainability.

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Last updated 7 months ago