> For the complete documentation index, see [llms.txt](https://climashield.gitbook.io/climashield/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://climashield.gitbook.io/climashield/weather-derivative-flow.md).

# Weather Derivative Flow

### **1.  Contract Creation:** 

The platform owner creates weather derivative contracts, specifying contract terms, premium amounts, conditions and % Returns after completion of the contract (e.g., based on weather data like temperature or rainfall).

### **2.  Contract Listing:** 

Newly created contracts are listed on a platform for potential buyers to browse and purchase.

### **3.  Contract Purchase:** 

Buyers can choose and purchase contracts listed by the platform. Each buyer pays the specified premium amount.

### **4.  Vault Management:** 

The total funds collected from all buyers for a specific contract are stored in a secure vault.

### **5.  Data Monitoring:** 

Our Platform continuously monitors relevant weather data or external data feeds to determine if the contract conditions have been met.

### **6.  Payout Calculation:** 

When the conditions are met, the platform calculates the payout for each buyer based on the contract terms.

### **7.  Payout from Vault:** 

Payouts are automatically distributed to the wallets of the buyers from the vault. The smart contract ensures a fair and secure distribution of funds.

### **8.  Contract Completion:** 

Once the conditions are met and payouts are made, the contract is considered complete, and it may be closed or expired.

### **9.  Platform Fees:** 

Platform charges will be collected from the users, when they pay the premium.

<br>