When there is high liquidity available (supply) and relatively low proposers (demand), the policy fees are lower. Unless there is massive fear in the market, well-established projects, exchanges, and custody providers generally fall into this category. The assumption is--liquidity providers want to pool liquidity for high-quality and secure projects because there may be a relatively lesser likelihood of exploits. On the demand side, users may also feel less nervous about purchasing protection which equates to less demand.