> For the complete documentation index, see [llms.txt](https://docs.firelight.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.firelight.finance/welcome-to-firelight-protocol.md).

# Welcome to Firelight Protocol

Firelight Coverage adds an on-chain protection layer for DeFi positions. Program operators can elect cover on the vaults they run. Stakers supply backing capital. The Risk Consortium validates incidents against published coverage criteria and signals the protocol. The protocol pays program operators, who may distribute payouts to affected depositors under their vault terms.

{% hint style="warning" %}
Firelight Coverage is not insurance. It does not create a contract of insurance with Firelight, the Foundation, or a vault depositor. It is a protocol-based coverage mechanism that program operators elect on the vaults they run.
{% endhint %}

### Who participates

| Participant                      | What they do                                                                                                                                        | Access                                  |
| -------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------- |
| **Stakers**                      | Stake FXRP to back cover and earn protocol rewards                                                                                                  | Permissionless                          |
| **Program operators**            | Elect to enable cover on the vaults they run. Hold the on-chain Cover Token. Determine distribution criteria for payouts to their vault's end users | Permissioned to institutions in the MVP |
| **End users** (vault depositors) | Deposit into a program operator's vault. Inherit certain protections on deposits through the operator's election of cover and distribution criteria | Set by each operator's vault            |
| **Curators**                     | Design the vault strategies that program operators offer                                                                                            | Commercial arrangement                  |
| **Risk Consortium**              | Independently validate incidents against coverage criteria and signal the protocol                                                                  | Confirmed members                       |
| **Firelight Foundation**         | Stewards the protocol and holds protocol treasury                                                                                                   | Foundation entity                       |

End users do not interact with Firelight directly. They deposit into a program operator's vault. Any payout they receive is governed by that vault's terms, not by Firelight.

### Phase 1 and Phase 2

Firelight launched in **Phase 1** as a single-asset staking protocol. stXRP was backed by XRP through FXRP on Flare and deployed into Firelight during the Launch Phase. **Phase 2 (Coverage)** extends that base with an on-chain coverage protocol backed by the same staked capital.

This documentation focuses on Phase 2. Useful Phase 1 reference material remains here, including FAssets, FXRP, and stXRP definitions, launch-vault audits, and the onboarding flow for new stakers.

### Start here

* [Introduction](/introduction.md) explains what Firelight Coverage is, the problem it solves, who participates, and how the full flow works.
* [Core Concepts](/core-concepts.md) covers the risk framework, coverage types, period mechanics, and vault architecture.

### For different audiences

* Enabling cover on a vault you run: [For Program Operators](/for-program-operators.md)
* Staking FXRP to back coverage: [For Stakers](/for-stakers.md)
* Assessing incidents as an independent reviewer: [Risk Consortium](/risk-consortium.md)

### Reference

* [Risk and Pricing Model](/risk-and-pricing-model.md) explains how risk components are monitored in real time to drive pricing, capital adequacy, and diversification.
* [Protocol Architecture](/protocol-architecture.md) describes the protocol contracts and service layers that support coverage.
* [Resources](/resources.md) contains the FAQ, glossary, security information, and key links.


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:

```
GET https://docs.firelight.finance/welcome-to-firelight-protocol.md?ask=<question>&goal=<endgoal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.

The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.