# Token Model The Safura protocol includes a Ratcheting Automated Market Maker (RAMM) for minting and redeeming $SAFU. RAMM is a two-pool system built on the Capital Pool, ensuring claims are payable during major loss events. It balances **$S (Sonic)** inflow/outflow, $SAFU staking, investment allocations, and asset-liability management through an automated mechanism. Members can use assets in the Capital Pool to underwrite cover products and vote on investment allocations. **Ratcheting Automated Market Maker (RAMM)**[​](https://docs.nexusmutual.io/protocol/nxm-token/token-model#ratcheting-automated-market-maker-ramm) The RAMM model consists of two virtual one-sided Uniswap v2-style pools: Below Pool and Above Pool. Both pools share a defined amount of **$S** liquidity paired with virtual $SAFU reserves. **Below Pool:** * Handles swaps below the Book Value. * $SAFU sold is burned; **$S** is distributed. * Can only redeem $SAFU when the spot price is less than or equal to the Book Value. **Above Pool:** * Handles swaps above the Book Value. * **$S** is added to the pool, and $SAFU is minted in return. * Can only purchase $SAFU when the spot price is greater than or equal to the Book Value. --- # 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://docs.safura.io/token-model.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.