# Key Terms

**Actuarial Data**\
Statistical data used to assess and price insurance risks.

**Annual Percentage Yield (APY)**\
The return stakers earn by providing liquidity to insurance pools.

**BQ Chain**\
The blockchain layer managing BQ Labs’ operations and governance.

**Consortium**\
A group of stakeholders overseeing governance and claims processes.

**Governance**\
The decentralized voting system for protocol decisions and claims.

**Insurance Pool**\
A pool backed by stakers, providing insurance coverage to proposers.

**LIT (Liquid Insurance Token)**\
Tradable tokens representing stakers’ share in the pool.

**Parametric Insurance**\
Automatically triggered payouts based on predefined conditions.

**Proposer**\
Users who purchase coverage to protect assets from risks.

**Risk Assessment**\
Evaluation of risks to adjust premiums and ensure pool sustainability.

**Risk Infrastructure**\
The system enabling sponsor to create pools and manage insurance.

**Slashing**\
Penalties for malicious behavior, reducing a staker’s stake.

**Sponsor**\
Lead Insurers who initiate and manage an insurance pool.

**Staker**\
A user providing liquidity to a pool in exchange for APY and LITs.

**Underwriter**\
An entity managing insurance pools and attracting stakers.

**Validators**\
Participants validating transactions and securing the BQ Chain.