# RECORD Guard

RECORD Guard is the decentralized risk-sharing mechanism protecting investor capital against asset underperformance or default across active pools.

#### Operational Mechanism

Investors fund RECORD Pools secured by future royalties.

In cases of underperformance or default, Guard compensates investors using staked $RECORD tokens.

Guard provides systemic risk management, enhancing investor confidence and stability.

#### Staking & Yield

Participants stake $RECORD tokens to underwrite the entire protocol, receiving performance-based yields. Guard operates as a protocol-wide, collateral-backed insurance, incentivizing robust ecosystem security.

#### Activation Conditions

Guard triggers upon:

* Underperformance against expected returns.
* Asset default or cessation of royalty streams.
* Systemic risk events affecting multiple pools.

#### Composability

Guard integrates seamlessly with RECORD Pools, offering transparent, auditable risk management and potential integration into broader DeFi risk frameworks.


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