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05 policy lifecycle

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Actions edited this page May 8, 2026 · 42 revisions

Policy Lifecycle

Overview

Policies move through a two-step lifecycle:

  1. request stage (PolicyDraft created),
  2. bind stage (PolicyMetadata stored and active for claims).

This split allows stake-backed readiness checks between request and activation.

Lifecycle States

PolicyManager.PolicyStatus:

  • None - no draft exists.
  • Created - draft created via requestCoverage.
  • Cancelled - draft cancelled by the requesting covered vault/buyer before binding.
  • Bound - policy bound and active metadata persisted.

State Machine

stateDiagram-v2
    [*] --> None
    None --> Created: requestCoverage()
    Created --> Cancelled: cancelPolicyDraft()
    Created --> Bound: CoverPool.bindPolicyForRequest() -> PolicyManager.bindPolicy()
    Bound --> [*]
    Cancelled --> [*]
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Phase 1: Request Coverage

Entry: The wrapper owner (EOA/multisig) calls PolicyManager.requestCoverage(...) as msg.sender; this address is recorded as buyer.

Recommended tuple for the CoveredVaultWrapper integration:

  • buyer: wrapper owner (EOA/multisig). CoveredVaultWrapper._validatePolicyBinding enforces pol.buyer == owner() and reverts otherwise.
  • claimer: CoveredVaultWrapper (files claims atomically on withdrawal shortfall),
  • beneficiary: CoveredVaultWrapper (receives payout and tops up user exit),
  • bindPolicyHook: CoveredVaultWrapper (receives onPolicyBound callback to store policyId and set deposit cap).

Checks:

  • pool is factory-registered,
  • non-zero beneficiary/claimer/payout token,
  • payout token is on the supported whitelist,
  • non-zero duration,
  • hook address is non-zero and supports IBindPolicyHook.

Note: coverage amount (coverageLimit) is not validated at request time; it appears in the signed quote and is enforced at bind time via PolicyManager.bindPolicy.

Effects:

  • new policyId reserved,
  • PolicyDraft stored with status Created,
  • Core committee created with id = policyId via StakeManager.createCommittee(policyId, pool, duration).
  • Pool curator explicitly added as committee operator via StakeManager.addOperatorToCommittee(curator, policyId).

Phase 2: Optional Draft Cancellation

Entry: The buyer (wrapper owner who called requestCoverage) calls cancelPolicyDraft(policyId).

Checks:

  • draft exists and is Created,
  • caller is draft buyer.

Effects:

  • status becomes Cancelled,
  • StakeManager.removeOperatorFromCommittee(curator, policyId) is called to release the committee resources created in Phase 1 — the curator is removed as operator and the committee slot is freed in Core,
  • no policy metadata is created.

Phase 3: Bind Policy

Entry: Curator (pool admin) calls CoverPool.bindPolicyForRequest(...).

3.1 Quote and Draft Validation (in CoverPool)

  • draft exists and belongs to this pool,
  • draft status is Created,
  • quote pool and policy id match draft,
  • quote beneficiary matches draft beneficiary,
  • quote expirationTime >= block.timestamp (enforced by the validateQuote modifier in CoverPool),
  • quote signature valid under QUOTE_SIGNER_ROLE.

3.2 Core and Spec Registration

  • SpecRegistry.registerSpec(specId, spec) called by pool. The ISpec implementation must be pre-approved by the protocol admin via SpecRegistry.approveSpec(spec) before this call will succeed; an unapproved spec causes the entire bind transaction to revert.
  • StakeManager.setCommitteeVaults(policyId, vaults[], coverageLimit) binds committee backing vaults and configures TVL limits.

3.3 PolicyManager Finalization

PolicyManager.bindPolicy(...) validates:

  • caller is pool and pool is factory-registered,
  • request fields (buyer, beneficiary, claimer, payoutToken) match the stored draft,
  • policyId matches quote.policyId,
  • committee has at least one vault,
  • committee total stake (USD) >= coverageLimit (payoutToken-denominated) converted to USD via OraclePriceFeed.getUSDValue,
  • policy commit is unique.

Note: quote expiry and EIP-712 signature verification are performed exclusively in CoverPool._verifyQuote; PolicyManager.bindPolicy does not re-verify the signature even though the BindPolicyRequest struct carries the signature field.

Then it:

  • marks draft as Bound,
  • stores canonical PolicyMetadata,
  • triggers IBindPolicyHook.onPolicyBound(policyId, coverageLimit) (on CoveredVaultWrapper: stores policyId and configures the deposit cap from coverageLimit).

Phase 4: Active Coverage Window

A bound policy is claimable only during:

  • startTime <= block.timestamp < maturityTime.

Claims outside this window revert in ClaimManager.

Phase 5: Claim Path

Entry: authorized claimer (typically CoveredVaultWrapper acting as claimer) calls ClaimManager.fileClaim(...), triggered atomically on withdrawal-time shortfall detection.

Checks:

  • claimApprovalRequired[policyId] == false — curator must call approveNextClaim(policyId) between any two successive approved claims,
  • policy metadata exists,
  • !metadata.premiumDefaulted — filing is blocked if the policy owner has been flagged for premium default,
  • caller equals metadata claimer,
  • requested amount > 0 and <= remaining coverage,
  • evidence hash non-zero and not previously consumed for this policy,
  • claim is inside coverage window (startTime <= now < maturityTime).

Evaluation and resolution:

  • resolve spec by (pool, specId),
  • evaluate spec with current context,
  • if non-payable → claim rejected,
  • if payable → slash and settle payout to configured beneficiary; sets claimApprovalRequired[policyId] = true to gate the next claim.

Invariants

Identity and Mapping

  • policyId remains the canonical committee id for all Core interactions.
  • one draft -> one bound policy metadata record.

Economic Bounds

  • cumulative payouts per policy cannot exceed coverageLimit,
  • each claim request is capped by current remaining coverage.

Determinism

  • quote signature domain is pool-specific (quoteDomainSeparator),
  • policy commits are unique and cannot be re-registered.

Emergency Exit Path

Users may call CoveredVaultWrapper.emergencyRedeem or emergencyWithdraw to exit without triggering the insurance claim path. These functions set an in-memory transient flag (SKIP_INSURANCE_SLOT) that causes _computeInsurance to return 0, bypassing ClaimManager.fileClaim even when a shortfall would otherwise exist. The user explicitly waives their insurance entitlement for that exit. This path is intended as an escape hatch when ClaimManager is temporarily unavailable or the user chooses to exit at a loss without waiting.

Operational Checks for Integrators

  • Verify pool registration before request.
  • Verify stake readiness before bind attempts.
  • Ensure vault list is valid and non-empty at bind.
  • Ensure bind hook address is ERC165-compatible.
  • Ensure swap routes are configured before enabling live claim payouts.
  • Ensure the ISpec implementation is approved via SpecRegistry.approveSpec() before attempting policy binding. An unapproved spec causes bindPolicyForRequest to revert.
  • After each approved claim, the curator must call ClaimManager.approveNextClaim(policyId) to clear the approval gate before the next claim can be filed.

Next Steps

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