> For the complete documentation index, see [llms.txt](https://capturfi.gitbook.io/captur/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://capturfi.gitbook.io/captur/white-paper/portfolio-insurance.md).

# Portfolio Insurance

Wolves pay management and performance fees in the form of ETH to the protocol when investing in Eagle Ideas, Eagle Portfolios and Golden Eggs Baskets, a large part of which the protocol allocates to Eagles. However, part of the residual is available to pay a yield to CAPT holders for their staking of CAPT tokens to the protocol and thereby providing portfolio insurance against extreme losses on certain Golden Eggs Baskets.

### Tranching and lock-up periods

A CAPT token holder can choose between a junior loss tranche which absorbs any loss from a certain percentage up to and including a certain upper threshold percentage of a basket’s value and a senior loss tranche which absorbs any loss greater than the upper threshold. There is a lock-up period during which the stake cannot be withdrawn and is available to absorb such losses. The combination of tranche choice and lock-up period determines the yield a CAPT token holder receives for their staking.