@ensuro/core 1.2.7 → 2.0.0-beta10

package/contracts/PolicyPoolComponent.sol

@@ -3,11 +3,11 @@ pragma solidity ^0.8.0;
 
 import {UUPSUpgradeable} from "@openzeppelin/contracts-upgradeable/proxy/utils/UUPSUpgradeable.sol";
 import {IERC20Metadata} from "@openzeppelin/contracts/token/ERC20/extensions/IERC20Metadata.sol";
-import {IPolicyPool} from "../interfaces/IPolicyPool.sol";
-import {IPolicyPoolComponent} from "../interfaces/IPolicyPoolComponent.sol";
-import {IPolicyPoolConfig} from "../interfaces/IPolicyPoolConfig.sol";
+import {IPolicyPool} from "./interfaces/IPolicyPool.sol";
+import {IPolicyPoolComponent} from "./interfaces/IPolicyPoolComponent.sol";
+import {IAccessManager} from "./interfaces/IAccessManager.sol";
 import {PausableUpgradeable} from "@openzeppelin/contracts-upgradeable/security/PausableUpgradeable.sol";
-import {WadRayMath} from "./WadRayMath.sol";
+import {WadRayMath} from "./dependencies/WadRayMath.sol";
 
 /**
  * @title Base class for PolicyPool components
@@ -42,32 +42,38 @@ abstract contract PolicyPoolComponent is
   uint40 internal _lastTweakTimestamp;
   uint56 internal _lastTweakActions; // bitwise map of applied actions
 
-  event GovernanceAction(IPolicyPoolConfig.GovernanceActions indexed action, uint256 value);
-  event ComponentChanged(IPolicyPoolConfig.GovernanceActions indexed action, address value);
+  event GovernanceAction(IAccessManager.GovernanceActions indexed action, uint256 value);
+  event ComponentChanged(IAccessManager.GovernanceActions indexed action, address value);
 
   modifier onlyPolicyPool() {
     require(_msgSender() == address(_policyPool), "The caller must be the PolicyPool");
     _;
   }
 
-  modifier onlyPoolRole3(
-    bytes32 role1,
-    bytes32 role2,
-    bytes32 role3
-  ) {
-    if (!hasPoolRole(role1)) {
-      _policyPool.config().checkRole2(role2, role3, msg.sender);
-    }
+  modifier onlyComponentRole(bytes32 role) {
+    _policyPool.access().checkComponentRole(address(this), role, _msgSender(), false);
     _;
   }
 
-  modifier onlyPoolRole2(bytes32 role1, bytes32 role2) {
-    _policyPool.config().checkRole2(role1, role2, msg.sender);
+  modifier onlyGlobalOrComponentRole(bytes32 role) {
+    _policyPool.access().checkComponentRole(address(this), role, _msgSender(), true);
     _;
   }
 
-  modifier onlyPoolRole(bytes32 role) {
-    _policyPool.config().checkRole(role, msg.sender);
+  modifier onlyGlobalOrComponentRole2(bytes32 role1, bytes32 role2) {
+    _policyPool.access().checkComponentRole2(address(this), role1, role2, _msgSender(), true);
+    _;
+  }
+
+  modifier onlyGlobalOrComponentRole3(
+    bytes32 role1,
+    bytes32 role2,
+    bytes32 role3
+  ) {
+    IAccessManager access = _policyPool.access();
+    if (!access.hasComponentRole(address(this), role1, _msgSender(), true)) {
+      _policyPool.access().checkComponentRole2(address(this), role2, role3, _msgSender(), true);
+    }
     _;
   }
 
@@ -82,14 +88,23 @@ abstract contract PolicyPoolComponent is
     __Pausable_init();
   }
 
-  // solhint-disable-next-line no-empty-blocks
-  function _authorizeUpgrade(address) internal override onlyPoolRole2(GUARDIAN_ROLE, LEVEL1_ROLE) {}
+  function _authorizeUpgrade(address newImpl)
+    internal
+    view
+    override
+    onlyGlobalOrComponentRole2(GUARDIAN_ROLE, LEVEL1_ROLE)
+  {
+    require(
+      IPolicyPoolComponent(newImpl).policyPool() == _policyPool,
+      "Can't upgrade changing the PolicyPool!"
+    );
+  }
 
-  function pause() public onlyPoolRole(GUARDIAN_ROLE) {
+  function pause() public onlyGlobalOrComponentRole(GUARDIAN_ROLE) {
     _pause();
   }
 
-  function unpause() public onlyPoolRole2(GUARDIAN_ROLE, LEVEL1_ROLE) {
+  function unpause() public onlyGlobalOrComponentRole2(GUARDIAN_ROLE, LEVEL1_ROLE) {
     _unpause();
   }
 
@@ -102,22 +117,7 @@ abstract contract PolicyPoolComponent is
   }
 
   function hasPoolRole(bytes32 role) internal view returns (bool) {
-    return _policyPool.config().hasRole(role, msg.sender);
-  }
-
-  function _isTweakRay(
-    uint256 oldValue,
-    uint256 newValue,
-    uint256 maxTweak
-  ) internal pure returns (bool) {
-    if (oldValue == newValue) return true;
-    if (oldValue == 0) return maxTweak >= WadRayMath.RAY;
-    if (newValue == 0) return false;
-    if (oldValue < newValue) {
-      return (newValue.rayDiv(oldValue) - WadRayMath.RAY) <= maxTweak;
-    } else {
-      return (WadRayMath.RAY - newValue.rayDiv(oldValue)) <= maxTweak;
-    }
+    return _policyPool.access().hasComponentRole(address(this), role, _msgSender(), true);
   }
 
   function _isTweakWad(
@@ -139,7 +139,7 @@ abstract contract PolicyPoolComponent is
   function _validateParameters() internal view virtual {} // Must be reimplemented with specific validations
 
   function _parameterChanged(
-    IPolicyPoolConfig.GovernanceActions action,
+    IAccessManager.GovernanceActions action,
     uint256 value,
     bool tweak
   ) internal {
@@ -148,7 +148,7 @@ abstract contract PolicyPoolComponent is
     emit GovernanceAction(action, value);
   }
 
-  function _componentChanged(IPolicyPoolConfig.GovernanceActions action, address value) internal {
+  function _componentChanged(IAccessManager.GovernanceActions action, address value) internal {
     _validateParameters();
     emit ComponentChanged(action, value);
   }
@@ -157,7 +157,7 @@ abstract contract PolicyPoolComponent is
     return (_lastTweakTimestamp, _lastTweakActions);
   }
 
-  function _registerTweak(IPolicyPoolConfig.GovernanceActions action) internal {
+  function _registerTweak(IAccessManager.GovernanceActions action) internal {
     uint56 actionBitMap = uint56(1 << (uint8(action) - 1));
     if ((uint40(block.timestamp) - _lastTweakTimestamp) > TWEAK_EXPIRATION) {
       _lastTweakTimestamp = uint40(block.timestamp);

package/contracts/PremiumsAccount.sol

@@ -0,0 +1,480 @@
+// SPDX-License-Identifier: Apache-2.0
+pragma solidity ^0.8.0;
+
+import {Math} from "@openzeppelin/contracts/utils/math/Math.sol";
+import {IERC20Metadata} from "@openzeppelin/contracts/token/ERC20/extensions/IERC20Metadata.sol";
+import {SafeERC20} from "@openzeppelin/contracts/token/ERC20/utils/SafeERC20.sol";
+import {SafeCast} from "@openzeppelin/contracts/utils/math/SafeCast.sol";
+import {WadRayMath} from "./dependencies/WadRayMath.sol";
+import {IPolicyPool} from "./interfaces/IPolicyPool.sol";
+import {IEToken} from "./interfaces/IEToken.sol";
+import {Reserve} from "./Reserve.sol";
+import {IAccessManager} from "./interfaces/IAccessManager.sol";
+import {IPremiumsAccount} from "./interfaces/IPremiumsAccount.sol";
+import {Policy} from "./Policy.sol";
+import {IEToken} from "./interfaces/IEToken.sol";
+import {IAssetManager} from "./interfaces/IAssetManager.sol";
+
+/**
+ * @title Ensuro Premiums Account
+ * @dev This contract holds the pure premiums of a set of risk modules. The pure premiums is the part of the premium
+ * that is expected to cover the losses. The contract keeps track of the pure premiums of the active policies
+ * (_activePurePremiums) and the surplus or deficit generated by the finalized policies (pure premiums collected -
+ * losses).
+ *
+ * Collaborates with a junior {EToken} and a senior {EToken} that act as lenders when the premiums aren't enought to
+ * cover the losses.
+ *
+ * @custom:security-contact security@ensuro.co
+ * @author Ensuro
+ */
+contract PremiumsAccount is IPremiumsAccount, Reserve {
+  using Policy for Policy.PolicyData;
+  using WadRayMath for uint256;
+  using SafeERC20 for IERC20Metadata;
+  using SafeCast for uint256;
+
+  bytes32 public constant WITHDRAW_WON_PREMIUMS_ROLE = keccak256("WITHDRAW_WON_PREMIUMS_ROLE");
+
+  /**
+   * @dev The Junior eToken is the first {EToken} to which the PremiumsAccount will go for credit when it runs out of
+   * money. Optional (address(0)).
+   */
+  /// @custom:oz-upgrades-unsafe-allow state-variable-immutable
+  IEToken internal immutable _juniorEtk;
+
+  /**
+   * @dev The Senior eToken is the second {EToken} to which the PremiumsAccount will go for credit, after trying before
+   * with the junior eToken, when it runs out of money. Optional (address(0)).
+   */
+  /// @custom:oz-upgrades-unsafe-allow state-variable-immutable
+  IEToken internal immutable _seniorEtk;
+
+  /**
+   * @dev The active pure premiums field keeps track of the pure premiums collected by the active policies of risk
+   * modules linked with this PremiumsAccount.
+   */
+  uint256 internal _activePurePremiums; // sum of pure-premiums of active policies - In Wad
+
+  /**
+   * @dev The surplus field keeps track of the surplus or deficit (when negative) of the actual payouts made by the
+   * PremiumsAccount versus the collected pure premiums. On the negative side, it has a limit defined by `_maxDeficit()`,
+   * after that limit, internal loans are taken from the eTokens.
+   */
+  int256 internal _surplus;
+
+  struct PackedParams {
+    uint16 deficitRatio;
+    IAssetManager assetManager;
+  }
+
+  PackedParams internal _params;
+
+  /**
+   * Premiums can come in (for "free", without liability) with receiveGrant.
+   * And can come out (withdrawed to treasury) with withdrawWonPremiums
+   *
+   * @param moneyIn Indicates if money came in or out (false).
+   * @param value The amount of money received or given
+   */
+  event WonPremiumsInOut(bool moneyIn, uint256 value);
+
+  /**
+   * @dev Constructor of the contract, sets the immutable fields.
+   *
+   * @param juniorEtk_ Address of the Junior EToken (first loss lender). `address(0)` if not present.
+   * @param seniorEtk_ Address of the Senior EToken (2nd loss lender). `address(0)` if not present.
+   */
+  /// @custom:oz-upgrades-unsafe-allow constructor
+  constructor(
+    IPolicyPool policyPool_,
+    IEToken juniorEtk_,
+    IEToken seniorEtk_
+  ) Reserve(policyPool_) {
+    _juniorEtk = juniorEtk_;
+    _seniorEtk = seniorEtk_;
+  }
+
+  /**
+   * @dev Initializes the PremiumsAccount
+   */
+  function initialize() public initializer {
+    __PremiumsAccount_init();
+  }
+
+  /**
+   * @dev Initializes the PremiumsAccount (to be called by subclasses)
+   */
+  // solhint-disable-next-line func-name-mixedcase
+  function __PremiumsAccount_init() internal initializer {
+    __PolicyPoolComponent_init();
+    __PremiumsAccount_init_unchained();
+  }
+
+  /**
+   * @dev In the initialization, besides settings the parameters, we approve the spending of funds by the eTokens
+   * so we don't need to do it on every repayment operation
+   */
+  // solhint-disable-next-line func-name-mixedcase
+  function __PremiumsAccount_init_unchained() internal initializer {
+    /*
+    _activePurePremiums = 0;
+    */
+    if (address(_juniorEtk) != address(0))
+      currency().approve(address(_juniorEtk), type(uint256).max);
+    if (address(_seniorEtk) != address(0))
+      currency().approve(address(_seniorEtk), type(uint256).max);
+
+    _params = PackedParams({deficitRatio: 1e4, assetManager: IAssetManager(address(0))});
+    _validateParameters();
+  }
+
+  function assetManager() public view override returns (IAssetManager) {
+    return _params.assetManager;
+  }
+
+  function _setAssetManager(IAssetManager newAM) internal override {
+    _params.assetManager = newAM;
+  }
+
+  /**
+   * @dev This is called by the {Reserve} base class to record the earnings generated by the asset management.
+   *
+   * @param earningsOrLosses Indicates the amount earned since last time earnings where recorded.
+   * - If positive, repays the lons and accumulates the rest in the surplus.
+   * - If negative (losses) substracts it from surplus. It never can exceed _maxDeficit and doesn't takes
+   *   loans to cover asset losses.
+   */
+  function _assetEarnings(int256 earningsOrLosses) internal override {
+    if (earningsOrLosses > 0) {
+      uint256 earnings = uint256(earningsOrLosses);
+      if (address(_seniorEtk) != address(0)) earnings = _repayLoan(earnings, _seniorEtk);
+      if (address(_juniorEtk) != address(0)) earnings = _repayLoan(earnings, _juniorEtk);
+      _storePurePremiumWon(earnings);
+    } else {
+      require(_payFromPremiums(uint256(-earningsOrLosses)) == 0, "Losses can't exceed maxDeficit");
+    }
+  }
+
+  function _validateParameters() internal view override {
+    require(
+      _params.deficitRatio <= 1e4 && _params.deficitRatio >= 0,
+      "Validation: deficitRatio must be <= 1"
+    );
+  }
+
+  function purePremiums() external view override returns (uint256) {
+    return uint256(int256(_activePurePremiums) + _surplus);
+  }
+
+  /**
+   * @dev Returns the total amount of pure premiums that were collected by the active policies of the risk modules
+   * linked to this PremiumsAccount.
+   */
+  function activePurePremiums() external view returns (uint256) {
+    return _activePurePremiums;
+  }
+
+  /**
+   * @dev Returns the surplus between pure premiums collected and payouts of finalized policies. Returns 0 if no surplus
+   * or deficit.
+   */
+  function wonPurePremiums() external view returns (uint256) {
+    return _surplus >= 0 ? uint256(_surplus) : 0;
+  }
+
+  /**
+   * @dev Returns the amount of active pure premiums that was used to cover payouts of finalized policies (in excess of
+   * collected pure premiums). This is limited by `_maxDeficit()`
+   */
+  function borrowedActivePP() external view returns (uint256) {
+    return _surplus >= 0 ? 0 : uint256(-_surplus);
+  }
+
+  /**
+   * @dev Returns the surplus between pure premiums collected and payouts of finalized policies. Losses where more than
+   * premiums collected, returns a negative number that indicates the amount of the active pure premiums that was used
+   * to cover finalized premiums.
+   */
+  function surplus() external view returns (int256) {
+    return _surplus;
+  }
+
+  function seniorEtk() external view override returns (IEToken) {
+    return _seniorEtk;
+  }
+
+  function juniorEtk() external view override returns (IEToken) {
+    return _juniorEtk;
+  }
+
+  /**
+   * @dev Returns the maximum deficit that's supported by the PremiumsAccount. If more money is needed, it must take
+   * loans from the eTokens. The value is calculated as a fraction of the active pure premiums. The fraction is
+   * regulated by the `deficitRatio` parameter that indicates the percentage of the active pure premiums that can be
+   * used to cover payouts of finalized policies. In many cases is fine to use the active pure premiums to cover the
+   * losses because in most cases the policies with payout are triggered long time before the policies without payout.
+   * But this also can be dangerous because it can be postponing the losses that should impact on liquidity providers.
+   *
+   * @param ratio The ratio used in the calculation of the deficit. It's the deficitRatio parameter (whether the current
+   * one or the new one when it's being modified).
+   */
+  function _maxDeficit(uint256 ratio) internal view returns (int256) {
+    return -int256(_activePurePremiums.wadMul(ratio));
+  }
+
+  /**
+   * @dev Returns the percentage of the active pure premiums that can be used to cover losses of finalized policies.
+   */
+  function deficitRatio() public view returns (uint256) {
+    return uint256(_params.deficitRatio) * 1e14; // 4 -> 18 decimals
+  }
+
+  /**
+   * @dev Changes the `deficitRatio` parameter.
+   *
+   * Requirements:
+   * - onlyGlobalOrComponentRole(LEVEL2_ROLE)
+   *
+   * Events:
+   * - Emits GovernanceAction with action = setDeficitRatio or setDeficitRatioWithAdjustment if an adjustment was made.
+   *
+   * @param adjustment If true and the new ratio leaves `_surplus < -_maxDeficit()`, if adjusts the _surplus to the new
+   *                   `_maxDeficit()` and borrows the difference from the eTokens.
+   *                   If false and the new ratio leaves `_surplus < -_maxDeficit()`, the operation is reverted.
+   */
+  function setDeficitRatio(uint256 newRatio, bool adjustment)
+    external
+    onlyComponentRole(LEVEL2_ROLE)
+  {
+    require(newRatio <= 1e18 && newRatio >= 0, "Validation: deficitRatio must be <= 1");
+    int256 maxDeficit = _maxDeficit(newRatio);
+    require(adjustment || _surplus >= maxDeficit, "Validation: surplus must be >= maxDeficit");
+    IAccessManager.GovernanceActions action = IAccessManager.GovernanceActions.setDeficitRatio;
+    if (_surplus < maxDeficit) {
+      // Do the adjustment
+      uint256 borrow = uint256(-_surplus + maxDeficit);
+      _surplus = maxDeficit;
+      _borrowFromEtk(borrow, address(this), address(_juniorEtk) != address(0));
+      action = IAccessManager.GovernanceActions.setDeficitRatioWithAdjustment;
+    }
+    _params.deficitRatio = (newRatio / 1e14).toUint16();
+    _parameterChanged(action, newRatio, false);
+  }
+
+  /**
+   * @dev Internal function called when money in the PremiumsAccount is not enought and we need to borrow from the
+   * eTokens.
+   *
+   * @param borrow The amount to borrow.
+   * @param receiver The address that will receive the money of the loan. Usually is the policy holder if this is called
+   *                 in the context of a policy payout.
+   * @param jrEtk If true it indicates that the loan is asked first from the junior eToken.
+   */
+  function _borrowFromEtk(
+    uint256 borrow,
+    address receiver,
+    bool jrEtk
+  ) internal {
+    uint256 left;
+    if (jrEtk) {
+      // Consume Junior Pool until exhausted
+      left = _juniorEtk.internalLoan(borrow, receiver, false);
+    } else {
+      left = borrow;
+    }
+    if (left > NEGLIGIBLE_AMOUNT) {
+      // Consume Senior Pool only up to SCR
+      left = _seniorEtk.internalLoan(left, receiver, true);
+      require(left <= NEGLIGIBLE_AMOUNT, "Don't know where to take the rest of the money");
+    }
+  }
+
+  /**
+   * @dev Updates the `_surplus` field with the payment made. Since the _surplus can never exceed `_maxDeficit()`,
+   * returns the remaining amount in case something can't be paid from the PremiumsAccount.
+   *
+   * @param toPay The amount to pay.
+   * @return The amount that couldn't be paid from the premiums account.
+   */
+  function _payFromPremiums(uint256 toPay) internal returns (uint256) {
+    int256 newSurplus = _surplus - int256(toPay);
+    int256 maxDeficit = _maxDeficit(deficitRatio());
+    if (newSurplus >= maxDeficit) {
+      _surplus = newSurplus;
+      return 0;
+    }
+    _surplus = maxDeficit;
+    return uint256(-newSurplus + maxDeficit);
+  }
+
+  /**
+   * @dev Stores an earned pure premium. Adds to the surplus, increasing the surplus if it was positive or reducing the
+   * deficit if it was negative.
+   *
+   * @param purePremiumWon The amount earned
+   */
+  function _storePurePremiumWon(uint256 purePremiumWon) internal {
+    if (purePremiumWon == 0) return;
+    _surplus += int256(purePremiumWon);
+  }
+
+  /**
+   *
+   * Endpoint to receive "free money" and inject that money into the premium pool.
+   *
+   * Can be used for example if the PolicyPool subscribes an excess loss policy with other company.
+   *
+   * Requirements:
+   * - The sender needs to approve the spending of `currency()` by this contract.
+   *
+   * Events:
+   * - Emits {WonPremiumsInOut} with moneyIn = true
+   *
+   * @param amount The amount to be transferred.
+   */
+  function receiveGrant(uint256 amount) external {
+    currency().safeTransferFrom(_msgSender(), address(this), amount);
+    _storePurePremiumWon(amount);
+    emit WonPremiumsInOut(true, amount);
+  }
+
+  /**
+   *
+   * Withdraws excess premiums (surplus) to the destination.
+   *
+   * This might be needed in some cases for example if we are deprecating the protocol or the excess premiums
+   * are needed to compensate something. Shouldn't be used. Can be disabled revoking role WITHDRAW_WON_PREMIUMS_ROLE
+   *
+   * Requirements:
+   * - onlyGlobalOrComponentRole(WITHDRAW_WON_PREMIUMS_ROLE)
+   * - _surplus > 0
+   *
+   * Events:
+   * - Emits {WonPremiumsInOut} with moneyIn = false
+   *
+   * @param amount The amount to withdraw
+   * @param destination The address that will receive the transferred funds.
+   * @return Returns the actual amount withdrawn.
+   */
+  function withdrawWonPremiums(uint256 amount, address destination)
+    external
+    onlyGlobalOrComponentRole(WITHDRAW_WON_PREMIUMS_ROLE)
+    returns (uint256)
+  {
+    if (_surplus <= 0) {
+      amount = 0;
+    } else {
+      amount = Math.min(amount, uint256(_surplus));
+    }
+    require(amount > 0, "No premiums to withdraw");
+    _surplus -= int256(amount);
+    _transferTo(destination, amount);
+    emit WonPremiumsInOut(false, amount);
+    return amount;
+  }
+
+  function policyCreated(Policy.PolicyData memory policy)
+    external
+    override
+    onlyPolicyPool
+    whenNotPaused
+  {
+    _activePurePremiums += policy.purePremium;
+    if (policy.jrScr > 0) _juniorEtk.lockScr(policy.jrScr, policy.jrInterestRate());
+    if (policy.srScr > 0) _seniorEtk.lockScr(policy.srScr, policy.srInterestRate());
+  }
+
+  function policyResolvedWithPayout(
+    address policyHolder,
+    Policy.PolicyData memory policy,
+    uint256 payout
+  ) external override onlyPolicyPool whenNotPaused {
+    _activePurePremiums -= policy.purePremium;
+    if (policy.purePremium >= payout) {
+      uint256 purePremiumWon = policy.purePremium - payout;
+      if (address(_seniorEtk) != address(0))
+        purePremiumWon = _repayLoan(purePremiumWon, _seniorEtk);
+      if (address(_juniorEtk) != address(0))
+        purePremiumWon = _repayLoan(purePremiumWon, _juniorEtk);
+      _storePurePremiumWon(purePremiumWon);
+      _unlockScr(policy);
+      _transferTo(policyHolder, payout);
+    } else {
+      uint256 borrowFromScr = _payFromPremiums(payout - policy.purePremium);
+      _unlockScr(policy);
+      if (borrowFromScr > 0) {
+        _borrowFromEtk(borrowFromScr, policyHolder, policy.jrScr > 0);
+      }
+      _transferTo(policyHolder, payout - borrowFromScr);
+    }
+  }
+
+  /**
+   * @dev Internal function that calls the eTokens to lock the solvency capital when the policy is created.
+   *
+   * @param policy The policy created
+   */
+  function _unlockScr(Policy.PolicyData memory policy) internal {
+    if (policy.jrScr > 0) {
+      _juniorEtk.unlockScr(
+        policy.jrScr,
+        policy.jrInterestRate(),
+        int256(policy.jrCoc) - int256(policy.jrAccruedInterest())
+      );
+    }
+    if (policy.srScr > 0) {
+      _seniorEtk.unlockScr(
+        policy.srScr,
+        policy.srInterestRate(),
+        int256(policy.srCoc) - int256(policy.srAccruedInterest())
+      );
+    }
+  }
+
+  /**
+   * @dev Internal function that repays a loan taken (if any outstanding) from the an eToken
+   *
+   * @param purePremiumWon The amount earned and available for loan repayment.
+   * @param etk The eToken with the potential debt
+   * @return The excess amount of the purePremiumWon that wasn't used for the loan repayment.
+   */
+  function _repayLoan(uint256 purePremiumWon, IEToken etk) internal returns (uint256) {
+    if (purePremiumWon < NEGLIGIBLE_AMOUNT) return purePremiumWon;
+    uint256 borrowedFromEtk = etk.getLoan(address(this));
+    if (borrowedFromEtk == 0) return purePremiumWon;
+    uint256 repayAmount = Math.min(purePremiumWon, borrowedFromEtk);
+
+    // If not enought liquidity, it deinvests from the asset manager
+    if (currency().balanceOf(address(this)) < repayAmount) {
+      _refillWallet(repayAmount);
+    }
+    etk.repayLoan(repayAmount, address(this));
+    return purePremiumWon - repayAmount;
+  }
+
+  function policyExpired(Policy.PolicyData memory policy)
+    external
+    override
+    onlyPolicyPool
+    whenNotPaused
+  {
+    uint256 purePremiumWon = policy.purePremium;
+    _activePurePremiums -= purePremiumWon;
+
+    // If negative _activePurePremiums, repay this first (shouldn't happen)
+    int256 maxDeficit = _maxDeficit(deficitRatio());
+    if (_surplus < maxDeficit) {
+      // Covers the excess of deficit first
+      purePremiumWon -= uint256(-_surplus + maxDeficit);
+      _surplus = maxDeficit;
+    }
+
+    if (address(_seniorEtk) != address(0)) purePremiumWon = _repayLoan(purePremiumWon, _seniorEtk);
+    if (address(_juniorEtk) != address(0)) purePremiumWon = _repayLoan(purePremiumWon, _juniorEtk);
+
+    // Finally store purePremiumWon
+    _storePurePremiumWon(purePremiumWon);
+    _unlockScr(policy);
+  }
+}