# 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: 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: ``` GET https://docs.ribbon.finance/ribbon-lend/introduction-to-ribbon-lend/built-in-insurance.md?ask= ``` The question should be specific, self-contained, and written in natural language. 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.