Risk Sharing Pool

The Risk Sharing Pool serves as a protective layer for investors, safeguarding against the underperformance of Investment Pools. By staking $RECORD tokens, participants provide collateral that can be used to compensate investors if royalty earnings do not meet expectations. This arrangement allows the Risk Sharing Pool to absorb potential losses, offering a safety net that boosts investor confidence.

Stakers are rewarded for their participation with yields determined by the protocol’s governance, creating an additional incentive for contributing to the pool. The Risk Sharing Pool not only mitigates volatility in music catalogue performance but also strengthens the overall stability and appeal of the investment ecosystem.