Proposed is an adaptive, layered, automated risk-transfer system and method thereof, with a self-optimizing, increased leveraged capacity and enhanced drop-down cover structure with a plurality of adjustable risk-transfer layers. If a triggered risk-event is assignable to either of the top risk-transfer layer or the bottom risk-transfer layer of the drop-down cover structure, a shared exhaustion factor is generated based on the assigned risk-transfer layer and based on a cover of the loss associated with the triggered risk event. The shared exhaustion factor is applied mutually to both layers by the system eroding both layers by the same exhaustion factor. The top layer and the bottom layer are reinstatable by a corresponding generated normalized reinstatement parameter values normalized over both layers and based on a thus provided shared limit and the erosion of the top layer and the bottom layer.