Role of the Consortium

A member of the Risk Consortium is an independent technical expert engaged by the Firelight Foundation to review reported coverage incidents and vote on their validity. This page lays out what that role entails, what members are expected to do, and the explicit limits on their authority.

Core function

A member's core function is to review the factual and technical evidence associated with a reported incident and to submit an on-chain signal on whether the incident meets the pre-defined coverage terms.

This is a verification role, not a discretionary one. Members apply existing coverage terms to the evidence in front of them. They do not interpret those terms creatively or extend them to novel scenarios without governance action.

Mandatory responsibilities

Every member is expected to:

• Vote on auto-included incidents. Review the exploit report for each incident within the agreed service-level window and vote Approve or Deny.

• Submit a written rationale. Accompany each vote with reasoning and key parameters, including exploit timestamp, affected protocol, impacted assets, total value exploited, and total value covered.

• Declare conflicts. A member with a direct or indirect interest in the outcome must declare a non-vote and step out of the process for that incident.

Optional or conditional responsibilities

Members may also publish ongoing risk assessments for protocols on or under consideration for the approved list, share urgent findings privately for rapid internal response, and participate in recovery efforts (eligible for a share of the recovery bounty).

Limits on member authority

The role is bounded. A member does not:

Activity	Not within member authority
Design or amend coverage terms	Reserved for the Risk Committee
Set premiums or economic terms	Reserved for the Risk Committee and the pricing process
Hold or manage capital	Handled by the Foundation and custody layers
Authorize fund transfers	Executed by smart contracts based on on-chain vote outcomes
Assume underwriting risk	Borne by stakers
Act as an underwriter, claims administrator, or fiduciary	None of these roles apply

Consortium outputs are non-custodial verification signals. They support the protocol's automated execution of pre-defined rules. They do not replace those rules.

Independence and conflicts

The consortium operates at arm's length from the entities that build and operate the protocol. Members are expected to be independent of Firelight's core teams and commercial partners, disclose any relationships that could create a conflict, and abstain from voting on any incident where a conflict exists.

What a member produces

For each incident, a member produces a vote (Approve, Deny, or a declared non-vote), a written rationale, and an on-chain signal that contributes to the quorum calculation. The aggregation of these signals drives the protocol's automated response: if the quorum and approval threshold are met, the payout waterfall is triggered. If the incident is denied, no payout occurs and active Cover Tokens remain in force for the rest of the period.

Where to read next

• How Claims Are Assessed walks through the validation procedure.

• Becoming a Member covers eligibility and participation.