The vault doesn't charge an additional protection fee, but that doesn't mean protection comes without cost. Kraken's explanation is clear: Sentora integrates Firelight for the Protected Strategies USDC vault, and the protection fee is paid from the vault's earnings. The displayed APY already accounts for this cost deduction. This is not deposit insurance: The coverage limit is $100,000 per deposit address per protection period, and actual payouts are subject to total limits, available funds, and event determination. Changes in asset prices or APY are not covered. Double-check where the fees are deducted from and what losses are covered before deciding if this layer of protection addresses the risks you're taking. Original link https://support.(kraken.com)/articles/firelight-coverage