---
title: faq
canonical_url: https://ensurance.app/manual/faq
markdown_url: https://ensurance.app/manual/faq.md
subtitle: frequently asked questions
section: reference
---

# faq

*frequently asked questions*

Common questions about ensurance, natural capital, and the protocol.

## general

### what is ensurance?

Ensurance is proactive protection for natural capital. Unlike insurance (which compensates after damage), ensurance protects ecosystems from day one with a clear path to permanent protection.

### what's the difference between insurance and ensurance?

| Aspect | Insurance | Ensurance |
|--------|-----------|----------|
| Timing | Reactive (after damage) | Proactive (from day one) |
| Purpose | Compensate loss | Prevent loss |
| Outcome | Financial recovery | Ecosystem protection |
| Duration | Policy term | Path to permanence |

### is it wrong to put a price on nature?

Nature is already priced—at zero. Every development decision that destroys ecosystems implicitly prices nature at nothing.

We use pricing not to reduce nature to money, but to give nature a defense against activities that have prices. The instruments serve nature; nature is not reduced to instruments.

### does ensurance replace insurance?

No. Ensurance cannot pay you after a loss, does not satisfy a lender's or regulator's coverage requirement, and does not stop every event. It funds the present condition of the place that sets the size of the loss — the wetland above the town, the forest around the reservoir — so insurance has less to cover. The two stack: keep the policy, ensure the place under it. A smaller expected loss is the mechanism, not a quoted discount; no loss-ratio benefit has been measured for this instrument yet. The full comparison is [ensurance vs insurance](/guide/ensurance-vs-insurance), and the honest list of limits is [what ensurance cannot do](/guide/what-ensurance-cannot-do).

## natural capital

### what is natural capital?

Natural capital is the stocks of living and non-living natural phenomena that generate flows of benefits essential to all life. Stocks are ecosystems (forests, wetlands, watersheds). Flows are services (clean water, climate regulation, pollination).

### what is a natural cap rate?

The natural capitalization rate expresses the relationship between annual ecosystem service value (flows) and underlying asset cost (stocks):

```
Natural Cap Rate = Annual Flows Value / Stocks Value
```

Higher rates indicate ecosystems that are cost-effective to conserve—high annual value relative to acquisition cost. Our research shows natural cap rates of 131-766%, far exceeding traditional real estate (4-10%).

### what are stocks and flows?

**Stocks** are ecosystem types—the containers. Ensurance recognizes 15: forests, wetlands, coastal systems, grasslands, etc.

**Flows** are ecosystem services—the benefits. Ensurance tracks 19: clean water, climate stability, pollination, habitat, etc.

## instruments

### what's the difference between coins and certificates?

| Aspect | Coins | Certificates |
|--------|-------|-------------|
| Standard | ERC-20 | ERC-1155 |
| Scope | Protocol-wide | Asset-specific |
| Funding | Indirect (trading) | Direct (purchase) |
| Liquidity | High (DEX) | Lower (marketplace) |

Coins are for liquid participation. Certificates are for direct commitment.

### what's the difference between policies and lines?

**Policies** fund a titled natural asset. They require a cooperating titleholder. The whole ecosystem on that asset is the unit.

**Lines** fund stewardship where no single titleholder is cooperating — a watershed, a species, a community, a purpose. A line is the usual certificate, not a draft that every place must graduate from. See certificates.

### can i stack other credits with ensurance?

Yes. Ensurance is designed to be the foundation layer. Carbon credits, biodiversity credits, RECs, and other instruments can stack on top, provided proper MRV prevents double counting.

## participation

### how do i get started?

1. **Connect** wallet or sign up with email
2. **Explore** agents and instruments
3. **Participate** by holding coins, certificates, or creating an agent

### what is an agent?

Agents are accounts that participate in ensurance—representing people, places, projects, or purpose. Each agent is an ERC-721 NFT with a tokenbound account that can hold assets and execute transactions.

### what are the three modes?

| Mode | Description |
|------|-------------|
| **Manual** | Human controls all actions via UI |
| **Automated** | Scheduled programs execute strategies |
| **Autonomous** | The agent judges inside its mandate. Off until enabled. Same actions and programs. |

### what's the difference between owner and operator?

**owner** (🟢) is the external account you connect.
**operator** (🔵) is the account created when you sign in.

both are your accounts. email-only users use the operator account. wallet users can use both.

## protocol

### what is DUNA?

Decentralized Unincorporated Nonprofit Association—a member-owned structure where agents are members. It provides legal recognition without corporate overhead.

### how are decisions made?

Most decisions are local and automatic:
- **Agents** act within mandate
- **Groups** coordinate members
- **Protocol** changes require broad input

We minimize coordination overhead. The goal is stewardship, not administration.

### what is ENTRUST?

ENTRUST is permanent protection status. When an ensurance policy is fully paid, the underlying natural asset enters permanent trust—protected in perpetuity.

## technical

### what chain is ensurance on?

Base L2 (Ethereum Optimism stack).

### what token standards are used?

- **Agents**: ERC-721 + ERC-6551 (tokenbound accounts)
- **Coins**: ERC-20
- **Certificates**: ERC-1155

### where can i find more technical details?

- api — Integration endpoints
- Basin Field Manual — Research appendix

## terminology

### what is an "ensurer"?

The ensurer is the protocol itself (ENSURANCE DUNA) — not individual investors. Like Lloyd's of London provides insurance, the ensurance protocol provides ensurance. It structures, prices, and issues instruments. Individual capital providers are members.

### what about "underwriters"?

In traditional insurance, underwriters evaluate risk and set terms. In ensurance, any member can source deals, propose natural assets, create instruments, and participate in valuation. There is no separate "underwriter" role — it is a function members perform, and the protocol is the issuer.

### what is a "beneficiary" in ensurance?

We avoid using "beneficiary" as a role because everyone benefits from healthy ecosystems. The ensured is nature itself — and by extension, all of society. Members invest for specific reasons (risk reduction, yield, arbitrage) rather than being labeled beneficiaries.

### what about donors?

Donation is an action, not a role. Members who wish to donate can buy certificates and then give them back to the protocol, transfer them to another member, or burn them. The protocol also accepts donations to the foundation.

### what is a "catalytic investor"?

Catalytic capital (PRI, first-loss, concessionary) is a structure, not a separate role. These are stock investors who accept concessionary terms to de-risk the structure for other members. They are members investing on the cost side (stocks) with specific terms.

### what is the difference between a member and a participant?

**Members** have agent accounts (ERC-721 + TBA) and are protocol members via group membership. They receive distributions when holding certificates in connected wallets. **Participants** interact without agent accounts — via Uniswap, OpenSea, Aerodrome, or other external clients. They can hold instruments but do not receive distributions.

### what are distributions?

Distributions (not dividends) are the mechanism by which value flows to members. They include all types of value — ecological, cultural, social, and financial — not just monetary returns. We use "distributions" rather than "dividends" for legal compliance (DUNA structure) and accuracy.

### what are flow investors and stock investors?

These describe how members participate, not permanent roles. **Flow investors** (value side / flows side) = members investing in risk reduction and resilience through premiums and certificates. **Stock investors** (cost side / stocks side) = members providing capital for yield, secured by the real assets that protect the ecosystems within. Note: "stocks" refers to ecological stocks (natural capital) — ecosystems that accumulate value — not financial securities. The same member can be both. The terms map to ecological economics: flows = ecosystem services (annual value), stocks = ecosystems (accumulated assets).

## related

- overview — System introduction
- approach — Philosophy and principles