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.

---