> ## Documentation Index
> Fetch the complete documentation index at: https://docs.mithril.fyi/llms.txt
> Use this file to discover all available pages before exploring further.

# Phase 1: Genesis Markets

> The First 5 Insurance Markets — Mithril's Launch into Solana DeFi

<Note>
  **Phase 1 is where it begins.** Five flagship prediction markets. Five major Solana protocols. The foundation of onchain insurance.
</Note>

## Genesis Launch

Phase 1 deploys **5 insurance markets** targeting the largest, most critical protocols in Solana DeFi. These aren't random picks—they represent the **core infrastructure** where billions in user funds are exposed.

***

## The Genesis Five

<CardGroup cols={1}>
  <Card title="Jupiter" icon="planet-ringed">
    **Market:** *"Will Jupiter TVL drop by 50% in the next 30 days?"*

    Jupiter is Solana's dominant DEX aggregator, routing billions in swaps. A TVL collapse would signal ecosystem-wide distress.
  </Card>

  <Card title="Meteora" icon="meteor">
    **Market:** *"Will Meteora TVL drop by 50% in the next 30 days?"*

    Meteora powers concentrated liquidity on Solana. LPs and yield farmers are heavily exposed to protocol risk.
  </Card>

  <Card title="Jito" icon="layer-group">
    **Market:** *"Will Jito TVL drop by 50% in the next 30 days?"*

    Jito's MEV-powered staking attracts massive SOL deposits. Validator issues or MEV disruptions could crater value.
  </Card>

  <Card title="Kamino" icon="building-columns">
    **Market:** *"Will Kamino TVL drop by 50% in the next 30 days?"*

    Kamino's lending and liquidity products hold significant user capital. Bad debt events could trigger cascading losses.
  </Card>

  <Card title="Sanctum" icon="shield-halved">
    **Market:** *"Will Sanctum TVL drop by 50% in the next 30 days?"*

    Sanctum's LST infrastructure is critical for liquid staking. Slashing events or validator failures hit Sanctum users first.
  </Card>
</CardGroup>

***

## Phase 1 Treasury Allocation

<Info>
  **2% of total \$MITH supply** is allocated to Phase 1 market liquidity.
</Info>

| Allocation | Purpose                                    |
| ---------- | ------------------------------------------ |
| **40%**    | Initial market liquidity seeding           |
| **40%**    | Ongoing NO-side buying (YES subsidization) |
| **20%**    | Reserve for market stability interventions |

This allocation ensures:

* ✅ Deep liquidity from day one
* ✅ Consistently affordable YES hedges
* ✅ Buffer against market volatility

***

## How to Participate

### As a Hedger (Protection Buyer)

<Steps>
  <Step title="Connect Wallet">
    Link your Phantom, Solflare, or compatible Solana wallet.
  </Step>

  <Step title="Choose Your Market">
    Select the protocol you have exposure to. Have assets in Kamino? Go to the Kamino market.
  </Step>

  <Step title="Buy YES Shares">
    Purchase YES tokens. Your cost = your premium. If the event triggers, you receive the full payout.
  </Step>

  <Step title="Sleep Better">
    Your position is now hedged. If disaster strikes, you're protected.
  </Step>
</Steps>

### As a Speculator (NO Position)

<Warning>
  Taking NO positions means you're betting against the adverse event. If it occurs, you lose your stake.
</Warning>

* **Why take NO?** If you believe the protocol is solid and the event won't happen, NO shares offer yield.
* **Protocol support:** Mithril's treasury actively buys NO, but retail participants can too.

***

## Fee Structure

| Fee Type    | Rate | Distribution                           |
| ----------- | ---- | -------------------------------------- |
| Trading Fee | 1%   | Protocol treasury                      |
| Creator Fee | 0.5% | 50% → \$MITH buyback, 50% → Operations |

**Daily Buyback:** Every 24 hours, 50% of accumulated fees are used to purchase \$MITH on open markets.

***

## Market Resolution

Markets resolve automatically based on **onchain data**:

<Steps>
  <Step title="Oracle Monitoring">
    Protocol TVL is tracked via DeFiLlama and onchain data sources.
  </Step>

  <Step title="Threshold Check">
    At market expiry, oracle confirms if TVL dropped ≥50% from baseline.
  </Step>

  <Step title="Automatic Settlement">
    YES holders receive payouts if threshold breached. NO holders receive payouts if not.
  </Step>
</Steps>

<Note>
  No disputes. No committees. Pure onchain truth.
</Note>

***

## Phase 1 Timeline

| Milestone                 | Target     |
| ------------------------- | ---------- |
| Market Deployment         | Launch Day |
| Initial Liquidity Seeding | Launch Day |
| First NO Subsidization    | Day 1-3    |
| Full Market Activity      | Week 1     |
| First Market Resolution   | Day 30     |

***

## What's Next?

Phase 1 proves the model. Phase 2 scales it.

<Card title="Phase 2: Expansion" icon="arrow-right" href="/protocol/phase-2">
  10+ new protocols. Community governance. Broader coverage.
</Card>