> For the complete documentation index, see [llms.txt](https://docs.ribbon.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.ribbon.finance/ribbon-lend/introduction-to-ribbon-lend/built-in-insurance.md). # Built-in insurance Each pool has its own insurance fund; it is established by setting aside a percentage of 5% of accrued interest charged to the borrower. Following a default and the auction mechanism described above, two alternative scenarios may arise: 1. As mentioned, if the lenders reject the best offer received in the auction, they can ask for the partition of the insurance fund; 2. On the contrary, if they accept the bid, the insurance fund is automatically acquired by the person/organization who won the auction. The insurance sum is converted to protocol revenues when a pool is closed. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.ribbon.finance/ribbon-lend/introduction-to-ribbon-lend/built-in-insurance.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.