> For the complete documentation index, see [llms.txt](https://re0-2.gitbook.io/re-docs-v2/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://re0-2.gitbook.io/re-docs-v2/documentation/faqs.md).

# FAQs

Welcome to the docs. This is a collection of the questions we get asked most frequently.

### What is Re Protocol?

Re Protocol is a decentralized platform that channels stablecoin capital into fully collateralized reinsurance contracts through licensed insurers. Users deposit stablecoins into Insurance Capital Layers (ICLs), which allocate capital to quota-share reinsurance agreements. In return, depositors earn yield derived from a blend of on-chain and off-chain sources, plus a token-specific spread.

### What Tokens Can I Deposit?

Each Re product supports different deposit tokens:

* **reUSD:** USDC, USDT, USDe, sUSDe
* **reUSDe:** USDe, sUSDe

Visit the staking section of our app for the most up-to-date list of accepted assets.

### What are reUSD and reUSDe?

| Feature                 | reUSD                                                                                          | reUSDe                                                                                         |
| ----------------------- | ---------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------- |
| **Capital Tranche**     | Senior                                                                                         | Mezzanine                                                                                      |
| **Accepted Collateral** | USDC, USDT, USDe, sUSDe                                                                        | USDe, sUSDe                                                                                    |
| **Yield Mechanism**     | Weighted avg of SOFR (off-chain) and 7-day trailing sUSDe rate (on-chain), plus 250 bps spread | Weighted avg of SOFR (off-chain) and 7-day trailing sUSDe rate (on-chain), plus 850 bps spread |
| **Liquidity**           | Instant redemptions when on-chain liquidity is available; queue mode when depleted             | Quarterly redemption windows\*                                                                 |
| **Ideal For**           | Stablecoin holders seeking steady, lower-volatility income                                     | Participants willing to accept junior risk for a higher yield                                  |

Both tokens share the same underlying yield sources, the difference is the spread and the position in the capital stack.

\*Quarterly redemptions are conditional on available reinsurance liquidity.

### How does the capital stack work? <a href="#id-4.-how-does-the-capital-stack-work" id="id-4.-how-does-the-capital-stack-work"></a>

The Re Protocol uses a layered capital structure to protect participants:

1. **Reinsurance company equity** — the reinsurance partner puts its own capital at risk first, sitting junior to all protocol capital.
2. **reUSDe (mezzanine tranche)** — absorbs losses after the reinsurer's equity is exhausted. In exchange, earns a higher spread (850 bps).
3. **reUSD (senior tranche)** — protected by both the reinsurer's equity and the reUSDe layer. Earns a lower spread (250 bps) with greater liquidity.

### How is yield calculated?

Both reUSD and reUSDe earn a blended yield based on where protocol capital is deployed:

* **Off-protocol capital** (deployed to the reinsurance company) earns at the **7-day trailing average SOFR rate**.
* **On-chain capital** (held within the protocol) earns at the **7-day trailing average sUSDe basis trade rate**.

The final yield is the weighted average of these two rates, plus a token-specific spread:

* **reUSD:** +250 bps
* **reUSDe:** +850 bps

Token prices update daily at UTC 00:00 via Chainlink, with guardrails on maximum single-day price changes.

### How is risk managed?

* All ICLs participate in fully collateralized quota-share reinsurance contracts backed by a licensed reinsurer.
* The reinsurance company's own capital sits junior to all protocol capital, providing an additional loss buffer.
* On-chain reserves are transparent by default; off-chain balances are attested daily by The Network Firm and published via Chainlink.
* Critical protocol controls (oracle config, redemptions, access management, custodian management) are operated through MPC multi-signature wallets.