# Status system

When the insurance contract is successfully margined, the corresponding initial status is “Valid”. Depending on the P-Market volatility during the term or at the time of expiration, the contract will have the following termination states:

<table data-header-hidden><thead><tr><th width="154"></th><th></th></tr></thead><tbody><tr><td><strong>Status</strong> </td><td><strong>Description</strong> </td></tr><tr><td>Claimed</td><td><ul><li>The system has completed the payment to the user's wallet (*)</li></ul></td></tr><tr><td>Refunded</td><td><ul><li>At the time of contract expiration, P-Close is between P-Refund and P-Claim, the system returns the margin to the user's wallet.</li></ul></td></tr><tr><td>Liquidated</td><td><ul><li>During the period, P-Market hits P-Expire, the liquidation is triggered</li><li>At the time of contract expiration, P-Close is between P-Refund and P-Expire, the contract is liquidated due to expiration</li></ul></td></tr><tr><td>Canceled</td><td><ul><li>The contract completes the conditions for an early refund</li></ul></td></tr><tr><td>Invalid</td><td><ul><li>The contract was opened successfully but P-Open crossed the safe distance</li><li>The user is refunded after that</li></ul></td></tr></tbody></table>

### Explanation of reasons for closing the insurance contract

<table data-header-hidden><thead><tr><th width="208"></th><th></th></tr></thead><tbody><tr><td>P-Market hits  P-Claim</td><td>When the asset price hits the P-Claim during the contract period</td></tr><tr><td>Expire Contract</td><td>When the contract expires, the asset price does not hit the P-Claim nor the P-Expire</td></tr><tr><td>P-Market hits P-Expire</td><td>When the asset price hits the P-Expire level during the contract period</td></tr><tr><td>Users cancel contract before expiration</td><td>The user cancels the contract when all conditions are met</td></tr></tbody></table>

**Example:** Given the fear of risk when the BTC asset price decreases (52156.9) after you have purchased a BTC derivative with a increasing price, the user chooses to receive BEAR insurance support (as shown in the figure):

<figure><img src="https://2631931409-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FwbbXbReaiA3afn6WB9Vu%2Fuploads%2FIhowacMNdizcN6NPUpIM%2FImage%201.png?alt=media&#x26;token=fb557580-df97-4e17-941b-2ee2a58d1ce5" alt=""><figcaption></figcaption></figure>

&#x20;The user needs to deposit 23 USDT to buy a Standard insurance plan (5-2,000 USDT) with a Bear expectation for the BTC/USDT asset pair, at a P-Open price of 52,156.9 with a validity period of 12 hours. In this case, the default P-Claim is 46,644.09, P-Expire is 60,053.9, and P-Refund is 51,856.9.

This means that within 12 hours:

* When the BTC price drops to 46,644.09, hitting P-Claim, the system will pay 48,91 USDT back to the user's wallet.
* When the BTC price is between P-Open 52,156.9 and P-Refund 51,856.9, the contract will be liquidated.
* When the BTC price is between P-Refund 51,856.9 and P-Claim: 46,644.09, the contract will be refunded.
* When the BTC price is between P-Open 52,156.9and P-Expire 60,053.9, the contract will be liquidated.