InsurAce’s High-grade Risk Management to secure your bucket

Risk management is a key to ensure sustainable business model on InsurAce and guarantees the return on investment and protection. InsurAce introduces a three-step risk assessment approach for investment and protection protocols and bucket them into different risk categories.

Expert Assessment

🔎 The InsurAce Advisory Board will perform preliminary risk assessment on the new protocols at first with their expertise from relevant dimensions such as:

  • – Auditing reports of the protocol;
  • – Code analysis;
  • – Founding team qualifications;
  • – Operation track records;
  • – Relevance to existing hacked cases;
  • – etc.

Meanwhile, InsurAce will also work with the professional security auditing firms to seek for their support should there be extra complexity or challenges in due course.

After this, the Advisory Board will provide an assessment report and recommended risk score (1 to 5) as the reference for the community.

Community Assessment

👥 After the Advisory Board assessment, the protocol to be listed will also need to go through a community driven risk assessment which will be conducted by volunteered community members to further evaluate and get a risk score. The members who participate in this process will get INSUR tokens as incentives.

With the above two steps, a final risk score will be given to the protocol.

Continuous Update

🏋️‍♂️ Once the protocols is listed, we will employ the preparatory risk models to continuously evaluate risk level by collecting data and information of the given protocol, such as the staking changes, the claims to the protocol, correlation analysis to new security incidents, and etc. Such updates will be reflected into the existing risk model and provide up-to-date risk assessments.

Based on above risk assessment, protocols are bucked into different risk categories to construct investment or insurance staking pool with different return.

A look into InsurAce’s Investment Management Scheme

In the traditional insurance industry, the insurance company will use the funding from clients to invest in other financial products to generate returns for the clients. Similarly, InsurAce will also carefully use the free capital secured from the SCR to invest in other DeFi products to gain investment return.

InsurAce will build an investment function similar as Yearn Finance, to design and implement the effective strategies. Customers can either directly invest via the InsurAce Investment Portal, or earn passive income with the free capital staked via the Insurance Portal. The built-in insurance capabilities will be able to seamlessly provide protections over the DeFi protocols invested, and the investment return will in turn complement the insurance customers, which creates a secure and sustainable investment cycle holistically.

Some potential investment plans that InsurAce investment will consider are as below:

  •  Yield farming on audited protocols and find the profitable investment paths;
  •  Stake the funds with lending platforms such as Compound to earn interests;
  •  Stake the funds in DEX such as Uniswap to earn the profits of liquidity providers;
  •  Other eligible investment strategies.

Any and all investment yields by right shall be returned to the customers, however a minor portion of it might be used to cover the transaction / operation cost, and other potential expenses incurred therein.

About InsurAce

InsurAce is a decentralized insurance protocol, aiming to provide reliable, robust and carefree DeFi insurance services to the DeFi users, with very low premium and sustainable investment returns. InsurAce’s highlights include “0” Premium, Enriched Product Line, SCR Mining and Sustainable Return. InsurAce’s mission is to redefine DeFi insurance and protect users from security risks with user-friendly product accessibility and capital efficiency.

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