# Treasury & Insurance

> Markdown export of the Gearbox Protocol documentation page for agents and retrieval systems.

Canonical page: https://docs.gearbox.finance/developers/gp-treasury
Source file: content/developers/gp-treasury.mdx
Section router: https://docs.gearbox.finance/developers/llms.txt
Section full export: https://docs.gearbox.finance/developers/llms-full.txt

The Treasury Splitter contract governs how protocol fees are divided between market curators and the Gearbox DAO, while the insurance fund provides a minimal reserve to cover potential losses.

## Treasury Splitter

Every market generates fees from borrower interest. These fees are collected and split between two parties: the market curator who manages risk, and the DAO that maintains the protocol.

| Property | Detail |
| --- | --- |
| **Default split** | 50/50 between market curator and DAO |
| **Governance model** | Operates as a 2/2 multisig — changes require approval from both the Financial Representative and the market curator |
| **Fee collection timing** | Fees are collected when debt is repaid, not continuously |
| **Split change timing** | Changes to the treasury split take effect immediately, including for previously accrued but uncollected fees |

```mermaid
flowchart LR
    Borrower[Borrower Repays] -->|"fees collected"| Splitter[Treasury Splitter]
    Splitter -->|"50%"| Curator[Market Curator]
    Splitter -->|"50%"| DAO[DAO Treasury]
    FR[Financial Representative] -->|"manages split"| Splitter
```

### Delayed Fee Collection

Fees are not streamed or collected in real time. They accumulate within the protocol and are only realized when a borrower repays their debt. This means:

- The split ratio at the time of collection determines distribution, not the ratio at the time fees were accrued
- Changing the split retroactively affects all uncollected fees
- Both parties should be aware of this when negotiating split changes

## Financial Representative

Each chain has a Financial Representative appointed by the DAO to manage fee-related operations on that specific chain.

| Aspect | Detail |
| --- | --- |
| **Scope** | One chain |
| **Appointment** | Set during instance activation |
| **Replacement** | Changed via DAO vote |
| **User impact** | Cannot affect end users directly |

### Financial Representative Authority

| Action | Function | Description |
| --- | --- | --- |
| Set default split | `setDefaultSplit()` | Change the default fee division ratio |
| Set token-specific split | `setTokenSplit()` | Override the split for a specific token |
| Set insurance amount | `setTokenInsuranceAmount()` | Configure the undistributable reserve per token |
| Withdraw tokens | `withdrawToken()` | Withdraw collected fees from the splitter |

All of these actions require approval from **both** the Financial Representative and the relevant market curator (2/2 multisig).

## Insurance Fund

The Treasury Splitter holds a minimal undistributable amount as an insurance reserve. This fund exists to cover potential losses and cannot be withdrawn through normal fee collection.

| Property | Detail |
| --- | --- |
| **Purpose** | Cover protocol losses |
| **Configuration** | Set per token via `setTokenInsuranceAmount()` |
| **Accessibility** | Cannot be withdrawn through standard fee collection |
| **Management** | Requires 2/2 approval (Financial Representative + market curator) to modify |

## Learn More

- [Roles & Permissions](https://docs.gearbox.finance/developers/gp-roles) — Full breakdown of Financial Representative and other governance roles
- [PriceFeed Store](https://docs.gearbox.finance/developers/gp-pricefeed-store) — How price feeds are approved and managed
- [Omni-EVM & Instances](https://docs.gearbox.finance/developers/gp-instances) — How per-chain instances operate independently