**The information contained in this blog post is correct as of 2:00pm UTC 2nd June 2022 but may be subject to change. As new information comes to light from TFL (Terraform Labs) or other industry sources, updates may be released that change elements of this process. 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.**
Our Advisory Board team has produced the following report into the UST De-Peg incident that was triggered on the 13th of May 2022.
CLICK HERE TO ACCESS THE REPORT
Contained within the report:
- Investigation into the UST De-Peg Incident
- Summary of Claims
- Detailed Claim Analysis
- Recommended Vote
- Payout Proposal
- Details on deduction calculations
The Advisory Board have considered these reports, as well as feedback from experts across the industry and the recommended course of action, is to ACCEPT these claims.
Summary:
Total Covers sold: 234
Total Cover Amount: $22,158,820
Total Claims: 173
Total Claim Amount (USD): $12,474,477.84
Total Number of Rejected Claims: 18
Total value deducted from Luna Airdrop (USD): $177,692
Total Claim Amount after deductions (USD): $11,730,758.24
Upcoming Schedule of Events:
Staker Compensation Proposal: 4th June
UST Vote: 6th June
Vote ending: 8th June
Complaint & Appeal Period: 8th – 10th June
Result & Swap/Payout information: 11th June
As we weigh the balance between stakers, policy holders, INSUR token holders, our investors and the future of our project, we understand that it is impossible to give everyone what they want out of this situation and some will be left upset no matter the outcome.
It is for this reason that we are working as hard as we can to find the best balance for everyone. To aim to pay out those who have lost significant amounts of assets in this de-peg event, whilst limiting the cost to the stakers providing underwriting.
Obviously, nobody wants to lose money. Our compensation plan for stakers is coming in the next day or so and is comprised of two parts. The first part of this outlines how we will compensate them to bring their loss in this incident down to 10%. The second part is comprised of our updates to our systems, policies and risk strategies to ensure an event like this does not happen again.
We believe there is a bright future for InsurAce following this case, as a beacon for the future of insurance in this space. We expect a huge amount of growth in both sales and support from the wider crypto community, as well as innovative new solutions for capital provision and strong PR about this event.
This has been a challenging time for everyone involved. We have learned a lot from this process and will be implementing immediate changes across the board to ensure all of the pressure points are alleviated in the future.
We thank everyone who has been patient throughout the process and continue to welcome any feedback via our official channels.
We hope everyone can see this too and continues to support InsurAce with a fair vote. This is a pivotal moment for the wider crypto industry and we have a chance to do the right thing here.
The vote will take place on the 6th of June. Please follow the voting guidelines in this blog post.
