Following a review of our cover wording and risk assessment strategies in the aftermath of the TerraUST de-peg incident, the InsurAce team is thrilled to announce the relaunch of our updated Custodian Risk Cover product.
For the Web3 economy to become a resilient and globally adopted trillion-dollar industry, it has to develop Web3 native structures to mitigate potential macro-prudential risks posed by digital asset custodians.
At InsurAce.io, we aim to develop innovative solutions to mitigate risks faced by Web3 users who employ the services of
Generally, digital asset custodians may range from custodial exchanges, entities with wallets who take possession of crypto assets of other projects or individuals to hold or manage those funds.
With our Custodian Risk cover, users of Web3-based financial services can be protected from devastating losses that may emanate from the inherent counterparty risk that they assume in the process of transferring or safe-keeping of their crypto assets.
Custodian Risk Cover — Cover Wordings Update
We have made essential changes to our existing Custodian Risk cover terms. This is to enhance transparency, expand the cover scope and update the structure of the product offering to accommodate the current realities Web3 economy & technical standards of the blockchain industry.
The new terms and conditions have taken effect on 24th October 2022. Holders of the Custodian Risk Cover prior to 24th October 2022 will continue with their current terms and conditions until the expiration of 14 days from the date of this announcement, after which the updated terms and conditions will apply.
Please note that in continuing with your Custodian Risk Cover thereafter, you will be taken to have agreed to the new terms and conditions. If you do not agree, you may choose to discontinue using the Custodian Risk Cover before then.
What is Custodian Risk?
In Web3 terms, Custodian risk underlines the likelihood of a user incurring a loss on their digital assets deposits in the event of a loss of those assets whilst as a deposit of a custodian.
Similar to banks, escrow firms, securities exchanges in the TradFi space, custodians in the Web3 economy typically include centralized cryptocurrency exchanges, custodial wallets and digital asset
s trading platforms.
The Custodian Risk Cover only applies to a Claimable Risk Event, which means the Designated Custodian has:
- Announced that it has lost or discovered that it has lost cryptocurrency assets to criminal fraud or theft during the Cover Period which includes at least 20% of the value of the Cover Purchaser’s cryptocurrency assets based on their Daily Average Market Price at the start of the Claimable Risk Event; or
- Completely suspended all withdrawals of all Users’ cryptocurrency assets without prior notice for a continuous period of 120 days or more where such suspension of withdrawals first occurred during the Cover Period,
directly causing Claimable Loss to the Cover Purchaser.
Cover Purchasers who have suffered from a Claimable Risk Event can submit their claims through our website. The claims and evidence submitted will be reviewed for determining payouts. For more details, kindly refer to our cover wording here.
Key Product Details
The global community of Web3 users is now able to access the updated Custodian Risk cover product through our newly-upgraded InsurAce dApp.
At launch, we will only support Binance and FTX while we continue to work towards enlisting more prominent Exchanges and crypto-native Custodial institutions in the near future.
Here are some key details on our updated Custodian Risk Cover product.
- Product Name — Custodian Risk cover
- Supported Custodians — Binance Exchange, FTX Exchange
- Monthly Premium — approx. 2.6%
- Cover Wording — Read here
Thank you for using InsurAce’s products and services.
InsurAce.io is a leading decentralized multi-chain protocol that provides reliable, robust and secure risk protection services to Web3/DeFi users, allowing them to protect their investment funds against various risks.
Web3-native cover products offered by DeFi protocols have come into the global limelight following the devastating $40billion TerraUST crash where InsurAce’s $11.7m payouts played a major role in sustaining investor confidence and averting a systemic crash for the crypto industry.
With InsurAce.io, users can rely on:
- Unbeatable Competitive Pricing
- Cross-chain Coverage
- Multi-chain Accessibility
- Sustainable Returns
Since our debut in April 2021, InsurAce.io has built a full-spectrum cross-chain product line that covers 140+ protocols, 3 CEXs and 1 IDO platform running on Ethereum, as well as Solana, BNB Smart Chain, Polygon, Fantom, Gnosis, Arbitrum, Avalanche, Harmony, Celo, Cronos, Boba, ICON, Ontology, Moonriver, Moonbeam, Bifrost, Aurora, and Optimism. InsurAce.io currently has a live product deployed on Ethereum, BNB Smart Chain (BSC), Polygon, and Avalanche.
InsurAce is led by founders Oliver Xie, Sum Wu and Dan Thomson (@vagrantcrypto) with a globally distributed team of insurance and web3 experts.