# Understanding Hakifi Insurance

Whenever you join an insurance policy, the first and most important thing is to understand the rules and status of that insurance. Below are the simple terms and status when opening an insurance contract on Hakifi.

**Status**

| Available  | The status after opening the contract successfully.                                |
| ---------- | ---------------------------------------------------------------------------------- |
| Claimed    | The system has completed the payment to the user's wallet.                         |
| Refunded   | The system has refunded the margin to the user's wallet.                           |
| Canceled   | The contract is canceled. The system has refunded the margin to the user's wallet. |
| Liquidated | The contract is liquidated.                                                        |
| Invalid    | The contract is not available when exceeding a safe price range.                   |

**Terms**

| Market Price                                         | <ul><li>The current Market Price of the trading pair.</li><li>Prices are shown with real-time data.</li></ul>                                                                                                                                  |
| ---------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| Claim Price                                          | <ul><li>The covered price</li><li>When the Market Price reaches the Claim Price, the system activates the payment.</li></ul>                                                                                                                   |
| <p>Liquidation Price (Liq. Price)</p><p><br><br></p> | <ul><li>Depends on Claim Price and Period.</li><li>When the Market Price reaches the Liq. Price, the contract is liquidated immediately.</li></ul>                                                                                             |
| Refund Price                                         | <ul><li>The Refund Price is calculated based on the set of conditions including the open price.</li><li>When the Market Price is between the Refund Price and the Claim Price at the Expiration Time, the user's margin is refunded.</li></ul> |
| Close Price                                          | <ul><li>The price at contract closing.</li><li>The Close price is determined at the time the contract changes from "Available" to another status.</li></ul>                                                                                    |
| Open Price                                           | <ul><li>The price at contract opening.</li></ul>                                                                                                                                                                                               |
| Cover Amount                                         | <ul><li>Amount of assets to be covered.</li><li>Units of USDT or Assets.</li></ul>                                                                                                                                                             |
| Refund Amount                                        | <ul><li>The amount to be refunded.</li><li>The Refund Amount is automatically refunded when refund conditions are met or when users decide to close the contract before expiration time.</li></ul>                                             |
| Claim Amount                                         | <ul><li>The Claim Amount is automatically transferred to the user's wallet after the Market Price reaches the Claim Price.</li><li>With a certain margin, The shorter the contract period, the greater the ratio of Claim Amount.</li></ul>    |
| Margin                                               | <ul><li>The amount that users need to deposit to open a contract successfully</li><li>The margin amount ranges from 2% to 10% of the cover amount</li></ul>                                                                                    |
| Period                                               | <ul><li>The term of the contract depends on the margin rate and Claim Price.</li></ul>                                                                                                                                                         |
| Open Time                                            | <ul><li>The time that the contract is activated.</li></ul>                                                                                                                                                                                     |
| Close Time                                           | <ul><li>The time that the contract is closed.</li></ul>                                                                                                                                                                                        |
| Expire Time                                          | <ul><li>The time that the contract expires.</li></ul>                                                                                                                                                                                          |
| Bull                                                 | <ul><li>Protect your assets/positions against the risk of price increasing.</li></ul>                                                                                                                                                          |
| Bear                                                 | <ul><li>Protect your assets/positions against the risk of price decreases.</li></ul>                                                                                                                                                           |


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