An open cover performs the same tasks as a facultative obligatory treaty from a technical point of view and the two can be considered as synonymous. However, open cover is more of a facility in a certain branch or category than the more general and wider treaty. Thus, an open cover may be confined to petrochemical risks or highly fluctuating stock risks in certain specific commodities such as cotton, or to certain types of cargo risks. Moreover, the Ceding Company has the liberty to make cessions up to a certain agreed amount without the maximum liability being expressed as a number of lines.