Hold a tokenised bond and worried about a missed coupon?
Buy cover and pay a premium.
If the issuer defaults, you are paid from a reserve that was funded before the cover was ever sold.
No adjuster, no waiting on a decision.
The default is what triggers the payout.
On a default there is no claim to file. Anyone can run the settlement, and a verified proof releases your payout from the reserve.
Your position is committed on-chain as a Poseidon commitment. With confidential cover (built) the protocol proves solvency without revealing any buyer's size or the running totals.
Cover can never exceed the reserve behind it. You are backed by collateral that is already on-chain, in claw-proof, freeze-proof assets.
Four steps. You only act in the first one.
You buy cover on your position and pay a premium. Your position is committed on-chain; confidential cover (built) hides the size and the totals.
An expected coupon does not arrive in full by the deadline. The shortfall is measured from on-chain payment data.
The settlement program proves who is owed and by how much, in zero knowledge, by the published formula.
Stellar verifies the proof and the reserve pays your cover, scaled to the realized shortfall. No one had to approve it.
The formula is published and pinned to the instrument.
A proof attests it was followed exactly.
credit_v1 instrument the cover amount is public (a transparent aggregate); confidential cover (built) hides each buyer's size and the totals, with solvency still proven in zero knowledge.