User deposits 10 CAKE into Cake Farm, but when they come to unstake PancakeSwap’s farm has lost their CAKE (e.g. rug or unintentional math issue). In this case the user is automatically compensated with NUTS to make up for the CAKE loss. The amount the user receives is up to 100% of their CAKE value (each Insured Farm has a NUTS allocation which would be split proportionally between depositors). As Squirrels TVL increases and it insures more farms, the amount of coverage on each farm will increase. See the roadmap!