# Earthquake Earthquake vaults redefine a core traditional Financial product, catastrophe bonds (CAT), while applying the primitive to a native DeFi setting. A CAT bond is an instrument that pays the issuer when a predefined disaster risk is realized, such as a hurricane or an earthquake. Earthquake uses the CAT bond concept but applies it to a de-peg event for stable coins, liquid wrappers and other derivative products in DeFi. Users can hedge against these assets de-pegging by depositing ETH collateral into the Premium vault and receiving ERC-1155 Y2K([Vault Tokens](/y2k-finance/tokenomics/vault-tokens.md)) in return. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://y2k-finance.gitbook.io/y2k-finance/products/earthquake.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.