Insurance Fund

We care about you.

Risks in Decentralized Financing

Investing in DeFi protocols carries a number of potential risks that investors should be aware of before getting involved. Here are some of the most common risks associated with DeFi investing:

Smart contract risk: DeFi protocols are powered by smart contracts, which are computer programs that execute the terms of a transaction automatically. If there is an error in the smart contract's code, or if it is exploited by hackers, it can result in financial losses for investors.

Liquidity risk: Some DeFi protocols may experience low liquidity, which means there may not be enough buyers or sellers to facilitate trades at a fair price. This can result in price slippage and unexpected losses for investors.

Market risk: DeFi protocols are subject to the same market risks as other investments, including volatility, speculation, and the potential for market crashes.

Regulatory risk: The DeFi ecosystem is still largely unregulated, which means that it is subject to regulatory uncertainty and potential changes to laws and regulations that could impact the value of investments.

Counterparty risk: DeFi platforms rely on other participants in the ecosystem to provide liquidity and execute transactions. If one of these parties defaults or is involved in fraudulent activity, it can result in losses for investors.

It's important to note that these risks are not exclusive to DeFi investing and can be found in other types of investments as well. However, investors should be aware that DeFi is a relatively new and rapidly evolving ecosystem, and that there may be additional risks that have not yet been identified or fully understood. It's recommended that investors do their due diligence and carefully consider the risks before investing in any DeFi protocol.

Why An Insurance Fund?

As discussed above, DeFi protocols can carry some risks, but we want to make sure that you feel confident and secure when you invest with us.

That's why we're proud to announce that we're launching an insurance fund to protect our users from unexpected events that could result in financial losses. This fund will be built up overtime and we aim to cover up to 70-80% of money staked at any given time, giving you peace of mind and the assurance that your funds are safe.

Our insurance fund is made up of contributions from our users via NFT mint revenue as well as royalties and profits from the staking itself. It's designed to protect you from risks such as smart contract errors, hacks, and other unforeseen events that could cause significant financial losses. It will be locked in a cold storage and never to be touched or leveraged by us. The wallet address will also be made public for everyone to monitor activity.

While we do not expect any compromises to occur, the purpose of our insurance fund is so you can invest with confidence and know that you're part of a community that cares about your financial well-being. We're committed to providing a safe and secure platform for our users, and we believe that our insurance fund is a crucial part of achieving that goal.