# How It Works

<figure><img src="/files/mbKadGj7t2IVcXiXII6C" alt=""><figcaption></figcaption></figure>

1. Copra **opens a vault** with certain parameters for protocol partners, **integrating with one or more of their liquidity pools**
2. The vault will be **loaded with buffer funds from insurers** where the first insurer will be the protocol partner itself (that’s how they leverage their own yield)
3. This setup allows **lenders to get fixed-yield and some principal-protection** through vault accounting
4. The vault runs through virtual **30-days tenor** to allow for term updates and **perpetually rolls-over**
5. **Liquidation mechanism** further protects lenders by **securing the deployed funds back to the vault** when certain thresholds are breached


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