Insure With ETH/USDT

Our DeFi protocol offers investors a second option to insure their trades against risks in the form of paying a direct premium (which goes towards the insurance fund) in ETH or USDT, with more chains added later


Insurance Premium Structure

The insurance premium is determined by our risk assessment engine which gives a risk rating system (1-100), where a higher score means lower risk.

Risk Rating

Premium Fee

Risk Level

91 – 100

4%

Very Low Risk

81 – 90

6%

Low Risk

71 – 80

8%

Moderate Risk

61 – 70

10%

Slightly High Risk

51 – 60

12%

High Risk

31 – 50

20%

Very High Risk

1 – 30

30%

Extremely High Risk

Example:

  • If a user wants to insure $1,000 in a project with a 75 rating, they pay an 8% premium ($80).

  • If the project then rugs or scams, they are reimbursed the original $1,000 via our Dapp.


Risk Assessment Methodology (Automated Engine)

The initial version of the DApp will manually list projects, but once we cruch the numbers we need and get a better understanding on how many insurance policies are paid out VS insurance policies taken out, future versions will use an automated risk engine based on:

1. On-Chain Metrics

  • Liquidity Pool Health (lock duration, concentration)

  • Token Locks (vesting schedules, team holdings)

  • Transaction Volume & Anomalies (unusual large dumps)

2. Audit Integration

  • Audits from reputable firms increase safety scores.

  • Unaudited projects could receive higher risk ratings.

3. Social Sentiment Analysis

  • Aggregates data from Twitter, Telegram, CoinGecko to detect:

    • Scam accusations

    • Community trust levels

    • Team reputation (known vs. anonymous)

4. Team & Project Transparency

  • Doxxed teams → Lower risk

  • Anonymous teams → Higher risk


Roadmap for automated engine

Phase 1: Manual Listing

  • Team manually vets and lists projects.

  • Basic risk scoring based on audits and liquidity checks.

Phase 2: Automated Risk Engine

  • AI-driven risk assessment using on-chain + social data.

  • Dynamic premium adjustments based on real-time threats.


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