Bridge Cover FAQs - InsurAce.io Blog

1. What is the multi-chain bridge cover being offered by InsurAce in partnership with LI.FI Bridge Aggregator?

The multi-chain bridge cover is an insurance product designed to protect users from losses incurred during a Specified Bridge Transaction. It compensates users for Claimable Losses suffered due to the permanent loss of funds or a lower amount of funds received on the destination chain because of an error in slippage.

2. How does multi-chain bridge cover differ from traditional insurance products?

Multi-chain bridge cover is specifically designed for decentralized finance (DeFi) transactions, focusing on risks associated with bridge transactions between blockchains.

3. Which blockchains are supported by the multi-chain bridge cover?

The policy wording does not specify the supported blockchains. However, it mentions that the cover applies to transactions executed through the LI.FI Bridge Aggregator Protocol.

4. How can I purchase a multi-chain bridge cover from InsurAce?

The policy wording does not explicitly describe the purchase process. You would need to refer to InsurAce’s platform or contact their support for more information.

5. What are the key benefits of using multi-chain bridge cover?

The key benefits include compensation for the lower of your Claimable Loss or the Specified Cover Amount in case of a successful claim, protection against permanent loss of funds or lower received funds on the destination chain, and the peace of mind of knowing your transactions are insured.

6. Are there any limitations or exclusions to the coverage provided by the multi-chain bridge cover?

The policy mentions that the Cover Purchaser may be compensated for Claimable Losses, excluding gas costs and fees incurred from executing the Specified Bridge Transaction. The cover will terminate upon the occurrence of a Claimable Risk Event or when the cover has expired, matured, or lapsed. Additionally, if the Cover Purchaser is covered by any other third-party insurance for the same subject matter, they must first seek to fully claim under such third-party insurance before receiving any compensation from the multi-chain bridge cover.

7. What are the premium rates for the multi-chain bridge cover?

The policy wording does not provide specific premium rates. These rates will likely depend on various factors and may be available on the InsurAce platform.

8. How is the premium for multi-chain bridge cover calculated?

The policy wording does not detail the premium calculation method. You would need to refer to InsurAce’s platform or contact their support for more information.

9. Is there a minimum and maximum coverage amount for the multi-chain bridge cover?

The policy wording does not specify minimum and maximum coverage amounts. You would need to refer to InsurAce’s platform or contact their support for more information.

10. How long is the waiting period before the multi-chain bridge cover becomes effective?

The policy wording does not mention a waiting period for the cover to become effective. You would need to refer to InsurAce’s platform or contact their support for more information.

11. Are there any specific risks that the multi-chain bridge cover does not cover?

The policy wording does not explicitly list excluded risks, but it defines a Claimable Risk Event as the permanent loss of funds or a lower amount of funds received on the destination chain due to a malfunction, hack, vulnerability exploit, or an error in slippage reported by the Specified Dex and/or Specified Bridge. Other risks not fitting this definition would likely not be covered.

12. What is the claims procedure for the multi-chain bridge cover?

Upon being notified of a possible Claimable Risk Event, the Advisory Board and LI.FI Bridge Aggregator Protocol will investigate and verify the event for up to seven days. Claims must be submitted within 21 days after the Protocol’s public confirmation of the Claimable Risk Event or 15 days after the Cover Period has expired. Claimants must submit their Proof of Loss and Ownership within seven days from the day of Claim submission.

13. How long does it take to receive a payout after a successful claim?

The policy wording does not specify a timeline for receiving payouts after a successful claim. Payouts will be made from the Bridge Cover Fund in accordance with the criteria set in the Claim Outcome or Appeal decision.

14. How are Claimable Losses valued?

Claimable Losses are valued based on the Daily Average Market Price (according to Price Information Source(s)) in $USDC at the time of the Specified Bridge Transaction’s execution. The tokens used for Cover Payouts shall be determined by the Protocol on a case-by-case basis.

15. Can I appeal a rejected claim?

Yes, claimants have 72 hours to file an appeal with fresh evidence against the Advisory Board’s decision and pay a fee on the amount claimed. The Advisory Board has sole and absolute discretion to make a final and conclusive determination on the appeal.

16. What Proof of Loss and Ownership is required for a claim?

Proof of Loss and Ownership includes but is not limited to:

Specified Bridge Transaction ID from LI.FI Bridge Aggregator Protocol, snapshots and links to on-chain records of the slippage, source and destination chain, and timestamp for the transaction start and end, a report from a Professional Security Firm describing the Claimable Risk Event, references to relevant on-chain transactions, and any other evidence deemed necessary by the Protocol.

17. Are there any Know Your Customer (KYC) requirements for purchasing the multi-chain bridge cover?

KYC verification is required for Cover Purchasers who want to purchase Insured Covers, which are wholly or partially insured by regulated third-party insurers. The verification will be made according to applicable KYC and anti-money laundering rules and regulations.

About InsurAce

InsurAce, a decentralized global risk cover protocol, offers mutual protection for digital assets against risks such as hacking, smart contract bugs, and stablecoin de-pegging. The platform features two membership-governed mutual pools and uses the $INSUR token for membership rights. With smart contracts issuing covers and a seamless user experience, the need for intermediaries is eliminated. The platform’s unique selling points include Low Fee Portfolio Cover, a Wide Product Range, SCR Mining, and Reliable Transparent Payouts.

InsurAce ‘s innovative approach includes portfolio-based coverage for a diversified risk management tool, support for DeFi protocols across multiple blockchains, and permissionless access for users. InsurAce is committed to continuous evolution, working on fair claims handling, adaptable coverage options, and collaboration with other DeFi protocols.