# CPPI

*Derivatives & Options — Finicade finance glossary*

CPPI shifts money between a risky asset and a safe one to keep a floor intact, buying more risk as the cushion grows — portfolio insurance by rule.

Constant proportion portfolio insurance — a rule that shifts money between a risky asset and a safe one to keep a floor intact, buying more risk as the cushion grows. A dynamic way to protect principal without buying an option.

**Also known as:** tipp-obpi, floor-and-cushion, portfolio insurance

**Related terms:** [Principal Protection](https://finicade.com/glossary/principal-protection), [Structured Product](https://finicade.com/glossary/structured-product), [Delta Hedging](https://finicade.com/glossary/delta-hedging)

**Taught in:** Quant Quest — CPPI Mechanics, Worked

Source: https://finicade.com/glossary/cppi