Plain-English definitions of the terms used across the LUMINA docs. If you’re new to parametric insurance or DeFi, start here.Documentation Index
Fetch the complete documentation index at: https://docs.lumina-org.com/llms.txt
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Insurance terms
Parametric insurance Insurance that pays out automatically when a measurable condition is met (e.g. “BTC drops 2.5% within 1 hour”), instead of after a human reviews a claim. No paperwork, no adjuster — the rule is fixed in advance. Premium The (small) amount you pay up front, in USDC, to buy cover. This is the price of the policy. Trigger The event that makes a policy pay out — a price moving by the agreed percentage within the agreed time window. When the trigger fires, a payout (ClaimBond) is created. Barrier / strike The reference price recorded at the moment you buy the policy. The price drop is measured against this snapshot. (“Strike” is the starting price; the “barrier” is the level the price must cross for a payout.) Deductible (20%) The portion of the covered amount you absorb yourself. LUMINA covers 80% of the loss, so 20% is the deductible. Payout (80%) The portion LUMINA pays when a policy triggers — 80% of the covered amount, delivered as a ClaimBond (face value ~1,000 of cover).Bonds and redemption
ClaimBond The payout itself: an ERC-1155 token minted to your wallet when a policy triggers. It represents a claim that can be redeemed for LUMINA at maturity or sold for USDC sooner. Maturity (730d) The date a ClaimBond can be redeemed for LUMINA — 730 days (about two years) after it is minted. Epoch A fixed time window the protocol uses for accounting (e.g. weekly redemption limits). Bonds and throttles are bucketed by epoch. Redeem Exchanging a matured ClaimBond for LUMINA tokens via the BondVault, at the protocol’s reference LUMINA/USD price. Throttle / queue A cap on how much can be redeemed per epoch (about 1.08% per week) to prevent a “bank run” on the vault. Redemptions above the cap are placed in a first-in, first-out (FIFO) queue and paid in a later epoch.Token and protocol mechanics
Burn Permanently removing LUMINA from circulation. 85% of every protocol fee is used to buy LUMINA and burn it, making the token deflationary. Shield One parametric insurance product — a single rule like “BTC drops 2.5% in 1 hour.” LUMINA has several shields, one per covered condition. Adapter A thin proxy contract (FlashShieldAdapter) that connects the
PolicyManager to a shield. One adapter sits in front of each product.
Sandbox
A free, no-wallet way to try a policy purchase end-to-end. The relayer
funds everything; trials are capped (e.g. $100 per trial) so you can test
without spending real funds.