Terms of Membership
Version 0.1 (Draft) • Last Updated: January 2026
TL;DR - The 30-second version
- →Not insurance — We're a mutual benefit fund. Benefits depend on fund health.
- →90-day waiting period — Prevents people from joining when they already know they're about to be laid off.
- →Vesting schedule — 50% at 0-6mo, 75% at 6-12mo, 100% after 12mo.
- →3% employer cap — No single company's layoffs can drain the fund.
- →Variable payouts — If reserves run low, benefits adjust. We publish quarterly reports.
- →Involuntary only — Layoffs and RIFs qualify. Quitting or getting fired for cause doesn't.
1. Nature of Organization
1.1 Mutual Benefit Organization
Canary operates as a mutual benefit organization, NOT an insurance company. We are not regulated by state insurance departments. Benefits are funded by member contributions and are subject to fund availability.
1.2 No Guarantee of Benefits
Benefits are not guaranteed. If claims exceed reserves, benefits may be reduced proportionally. By enrolling, you acknowledge this fundamental characteristic of mutual benefit organizations.
2. Membership & Eligibility
2.1 Eligibility Requirements
- • Must be employed in a technology-related role
- • Must be 18 years or older
- • Must provide accurate employment and salary information
- • Must not be under active performance improvement plan (PIP) at time of enrollment
2.2 Enrollment Waiting Period
New members must wait 90 days from enrollment before becoming eligible for income replacement benefits. This prevents adverse selection from individuals who anticipate imminent job loss.
2.3 Tenure-Based Benefit Vesting
| Membership Duration | Benefit Level |
|---|---|
| 0-6 months | 50% of calculated benefit |
| 6-12 months | 75% of calculated benefit |
| 12+ months | 100% of calculated benefit |
Rationale: Vesting encourages long-term membership and protects the fund from members who join only when they perceive elevated risk.
3. Contributions
3.1 Standard Contribution Rates
| Tier | Member Pays | Employer Pays | Total |
|---|---|---|---|
| Individual | $100/month | $0 | $100/month |
| Employer Match | $50/month | $50/month | $100/month |
| Employer Covered | $0 | $100/month | $100/month |
| Founding Member | $75/month | $0 | $75/month (locked) |
3.2 Contribution Allocation
4. Income Replacement Benefits
4.1 Benefit Calculation
Upon qualifying separation, eligible members receive:
- • 40% of Verified Base Salary at time of separation
- • Maximum: $12,500 per month
- • Duration: Up to 6 months
4.2 Qualifying Separation Events
Benefits are payable for involuntary separation only:
- • Termination without cause
- • Position elimination / Reduction in force
- • Employer cessation of business
- • Constructive termination (as determined by Canary)
4.3 Exclusions
The following are NOT qualifying events:
- • Voluntary resignation
- • Termination for cause
- • Expiration of fixed-term contract
- • Acceptance of voluntary separation package
- • Separation within 90 days of enrollment
- • Separation while on performance improvement plan
5. Risk Management
5.1 Employer Concentration Cap
No single employer's employees may exceed 3% of total Active Membership.
Purpose: Prevents correlated layoffs from a single employer from depleting the fund.
5.2 Variable Payout Mechanism
If the Claims Reserve Fund falls below critical thresholds, benefits are automatically adjusted:
| Reserve Runway | Benefit Adjustment |
|---|---|
| 18+ months | 100% of calculated benefit |
| 12-18 months | 90% of calculated benefit |
| 6-12 months | 75% of calculated benefit |
| <6 months | 50% + emergency measures |
Transparency: Current reserve runway is published in quarterly reports.
5.3 Catastrophe Reserve
10% of all employer sponsorship premiums are allocated to a Catastrophe Reserve. This reserve is accessed only when the General Claims Reserve falls below 6 months runway and requires board approval for release.
Required Acknowledgment
"I understand that Canary is a mutual benefit organization, not an insurance company. I acknowledge that: (1) Benefits are paid from a shared member fund and are not guaranteed; (2) If claims exceed fund reserves, my benefits may be reduced proportionally; (3) Canary does not guarantee any specific benefit amount; (4) My contributions are non-refundable except as provided in these Terms; (5) Benefits are subject to vesting based on membership tenure."
Draft Document: This is a planning document. Final Terms of Membership will be reviewed by qualified legal counsel before launch.