# Restoration Framework

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The Restoration Framework guarantees deterministic principal protection for Vault Curators by restoring their vault balance 1:1 to its pre-trade state — even in adverse market or operator failure scenarios.\
It operates through a tiered system that prioritizes restoration over penalty, ensuring vault solvency at all times.

### Restoration Reserve &#x20;

Protocol-managed pool that serves as the final restoration layer.

Funded by:

* Stability Fee applied each epoch on delegated YODL
* 33% of YODL Total Supply pre-allocated at genesis
* 10% of all operator slashing events automatically routed here

This reserve ensures deterministic, full principal restoration even in multi-layer or systemic drawdowns.

### Optional Third-Party Protection &#x20;

Institutional curators can opt in for external protection through partners such as [Catalysis](https://catalysis.network/) or similar providers.

These reserves can support specific market pairs or institutional vaults with programmable on-chain settlement.

This layer extends protection but is not required for full restoration.

Restoration Activation &#x20;

Restoration is triggered automatically during bounded liquidation when a vault’s Health Factor (HF ≤ 1.0) signals a shortfall.