**The information contained in this blog post is correct as of 2:00pm UTC 22nd May 2022, but is subject to change. As new information comes to light from Terra or other industry sources, updates may be released that change elements of this Guide. Some changes may be subject to a community vote. Please contact our team on Telegram or Discord for further clarification on any questions. Community feedback will enable us to improve this guide.**
For recent blog posts and updates go to www.insurace.io/blog including updates on claiming process, FAQs and general UST De-Peg information.
Included in this post:
- Claims Update
- Claim Voting Proposal (Report)
- InsurAce Voting Guide
- Payout Information
- User Guides
- Terra Compensation Plan Info
- Stakers’ Information
- Stakers’ Withdrawal & Compensation Plan Info
1. Claims Update
All Claims have now been submitted. New claim submissions will not be included. All claims will be grouped together as part of a Group Claim for efficiency.
As of today, the claim data received and processed are listed below.
- Total claim amount received: $12,471,042.37
- Total claim amount processed: $11,132,386.41
- Total claim amount under processing (awaiting further info): $1,338,655.96
- Total claim amount rejected: $559,991.77
- Total amount saved through correcting calculations: $40,800.95
- Total claim amount approved (subject to claim voting): $9,858,353.43
N.b.:
– These totals are likely to change during processing given the complexities of this case and as we double-check the validity of all claims and UST holdings.
– The “processed total” shows the total after initial processing. All claims will be thoroughly reviewed.
– The totals here should be taken as indicative, not final. Final totals will be released as soon as possible.
2. Claim Voting Proposal (Report)
Our Advisory Board is currently compiling a Proposal based on the latest industry information surrounding the recent De-Peg event of UST. This report will include information regarding claims, included and excluded as well as details on the causes of the wider De-Peg event and a suggested vote.
This proposal requires all claims to be processed. It is also more complicated than usual reports since there are many nuances to the UST De-Pegging event.
The report will suggest to “Accept” or “Reject” the claims, but it is only a reference to the voting, not a direct verdict.
An InsurAce community member has submitted the following analysis on why they believe the De-Peg event should not be paid out:
N.b. This analysis was conducted independently by a member of our community who has funds staked in the platform. It is included here to highlight the need for a thorough investigation into this case. It is not intended to represent the opinion of InsurAce on the matter, nor any of the team
3. InsurAce Voting Guide
While the claims are still under intensive processing, before the group claim voting is enabled. We would like to share some information on how the claim will be carried out.
The claim will be a group claim including a detailed voting proposal and proposed claim plan. The details of a group claim can be found here: https://docs.insurace.io/landing-page/documentation/protocol-design/claim-assessment/claim-assessment-process/group-claim
This is a guide to help users understand our voting process and to participate in the voting. Voting is open to all INSUR holders who hold and stake INSUR before the vote start date.
The vote start date is yet to be confirmed. All claims need to be processed first and the Proposal compiled before Voting can be scheduled. We will keep the community advised as this develops.
There is a maximum of 5% of the vote that any single user can achieve no matter how much INSUR they stake to vote with.
The team’s recommended vote will be released in the upcoming Report.
For new users who wish to participate in the claim voting, please stake your INSUR tokens as a claim assessor instead of staking into the underwriting pool. The INSUR staked by claim assessors will not be part of the claim pay-out assets.
How to become a claim assessor: https://docs.insurace.io/landing-page/documentation-1/user-guide/how-to-become-an-accessor
DO NOT STAKE AS AN UNDERWRITER. YOUR FUNDS WILL BE USED FOR PAYOUT. You need to stake as a Claims Assessor.
How to Get INSUR
If you wish to participate in the claim voting, the first step is to get INSUR tokens.
You can get INSUR tokens from any of the official exchanges listed here: www.insurace.io/market
If you get tokens from a CEX, make sure you withdraw to Ethereum Network, then use our bridge to transfer the tokens to other networks such as BNB Chain, Polygon or Avalanche.
Follow below guideline to stake and become a claim assessor.
If you buy from Huobi, do not withdraw to HECO network. This network is not currently supported by our app.
Stake to become a Claims Assessor
With the INSUR in your EVM wallet, you are ready to stake to become a Claims Assessor.
INSUR staked as the claim assessor for the vote will not be used for payouts.
Please follow these two guides to become a Claims Assessor:
https://docs.insurace.io/landing-page/documentation-1/user-guide/how-to-become-an-accessor
PLEASE FOLLOW METHOD 2
Claim Assessor Guide explaining voting weights.
https://docs.insurace.io/landing-page/documentation/protocol-design/claim-assessment/claim-assessor
How to Vote
Please follow this guide on how to cast your Vote:
https://docs.insurace.io/landing-page/documentation-1/user-guide/how-to-become-an-accessor
Voting Rewards
The successful side of the vote will be rewarded with INSUR tokens for their winning Vote.
Voting rewards are calculated as: 20% of the premiums collected for the claimed funds. These are proportionally shared amongst voters.
Result
The Result of the vote will be verified and announced on all Official InsurAce public channels. Twitter, Telegram, and Discord have the latest information and full updates. A blog post will also be published about the result afterwards.
4. Payout Information
Following an accepted vote by the Claims Assessors, the payout details will be released.
Claimants will need to have the confirmed amount of UST for their payout in the EVM wallet that purchased their original insurance.
Funds will be swapped via smart contract. Users will send us their UST and the payout will be in a proportional mix of our capital pools. This payout may come in one or more different tokens. (ETH, BNB, BUSD, USDC, USDT, AVAX, INSUR, MATIC, mStable USD, WETH, DAI)
Appeals Process
In the result of a Rejected vote. There is an appeals process. Details will be published following a Rejected Vote.
5. User Guides
Become an Assessor:
https://docs.insurace.io/landing-page/documentation-1/user-guide/how-to-become-an-accessor
Claim Assessors:
https://docs.insurace.io/landing-page/documentation/protocol-design/claim-assessment/claim-assessor
Advisory Board:
https://docs.insurace.io/landing-page/documentation/protocol-design/claim-assessment/advisory-board
6. Terra Compensation Plan
Any UST or LUNA holders wishing to participate in the proposed Terra Compensation Plan, should bridge their UST or LUNA back to the Terra blockchain to be included in the post-attack snapshot at their own risk and cost. We encourage users to do their own research on this Proposal, which looks like it will pass.
Users can bridge back to the EVM wallet before the voting starts.
“Post-attack” snapshot to be taken at Terra Classic block 7790000 (2022.05.27 03:59:51+08:00)
7. Information to Stakers
Given a potential claim total of around $11m we would like to share what we are doing to help reduce this figure, and minimize the impact on our stakers:
- Fully investigating the reasons and faults behind the De-Peg event to see if it should be excluded as a claimable event.
- Double-checking all claim submissions (after we get our initial estimates and full info received)
- Around $1m will be used from our premium pools. We cannot use all of the premium pools in case it is needed to pay out for another event.
- UST received may be used to help bring down the total.
- Some payouts may be delayed due to UST being locked or currently unavailable. (e.g. Nexo or Mars protocol). These may be settled later depending on ongoing communications.
- Other sources of capital may be secured to help reduce the impact on stakers.
- Subsequent compensation plan to stakers who continue to stake to reduce the loss.
Further details of these plans will be produced ahead of any payout.
8. Stakers’ Withdrawal and Compensation Plan Information
Stakers wishing to withdraw funds will be able to withdraw once either a Rejected Claim decision (without appeal) is decided, OR after all payout is settled following an Accepted Claim decision. At this time we do not have a specific date for withdrawals to be enabled given the ongoing claim processing. Assets in the withdrawal pools will continue to accrue rewards.
A detailed compensation plan is being created for stakers who remain with InsurAce following all claim payouts are settled. Stakers who withdraw funds once withdrawals are enabled will not be eligible to receive compensation. Stakers who keep their funds staked with InsurAce will be eligible for a compensation plan that will see their overall impact reduced greatly and able to earn yields going forward. More details will be published once the plan is finalized.
We understand that stakers would like a more specific answer, we are working as fast as we can to move through the required steps. We appreciate your patience during this period.
