The purpose of this document is to illustrate the Cover details of Nsure Smart Contract risk coverage. This document is not hardcoded into any Smart Contract deployed by Nsure.
The claim shall be payable if –
During the Period of Insurance, the Designated Smart Contract suffers an Attack directly resulting in an unintended usage of the Designated Smart Contract; and
As a direct result of the Attack, the Insured's fund locked in the Designated Smart Contract suffers a loss that the funds are either moved to another address which the Insured does not control or the funds are made permanently irrecoverable; and
The loss is realised, recognised either i) 100% of the Insured's fund directly affected by the Attack is permanently irrecoverable; or 2) part of Insured's fund directly affected by the Attack is permanently irrecoverable and the Insured has already sold the remaining funds which results in a lower amount than the fund valued one block before the Attack occurred.
The amount payable shall be the lesser of Cover Limit and the actual loss to the Insured's fund as a direct result of the Attack.
No benefits shall be payable for -
Any claims due to phishing, private key security breaches, malware, exchange hacks or negligence on behalf of the user; or
Any claims if the Designated Smart Contract was deployed primarily for the purpose of claiming on this Cover and not for real usage by customers; or
Any claims out of an Attack executed entirely or partly by the Insured; or
Any losses due to devaluation of Insured's assets, regardless such devaluation is related to the Attack or not; or
Any losses due to scam; or
Any losses of rewards or incentives yet to be distributed to a user(s) wallet address; or
Any losses due to a bug of the Designated Smart Contract disclosed to the public before the Period of Insurance starts; or
Any losses due to a hack starting before the Period of Insurance begins; or
Any claims due to an Attack where inputs, that are external to the smart contract system, behave in an unintended way and the smart contract system continues to operate as intended, where inputs include but are not limited to; oracles, governance systems, incentive structures, miner behaviour and network congestion.
The final claim decision is made by a decentralised voting mechanism. All coverage of Nsure Smart Contract Protect is provided on a discretionary basis, with Nsure Claim Adjusters having the final say on which claims are paid.
Price of Cryptocurrency
The price of cryptocurrency on the time of transaction in which the loss occurs shall be used in the calculation of actual loss, if necessary. The Insured is allowed to provide supporting material for such price, which shall be considered by the Claim Adjuster. Otherwise, Claim Adjustors shall get the cryptocurrency price at the time of transaction from CoinGecko or any other sources (e.g. price from most liquid exchange, average of multiple public database, especially in the circumstances that the cryptocurrency's price gets volatile due to the Attack) regarded reliable and fair in determining the claims amount payable. Claim Adjustors shall identify the price of cryptocurrency and its source in deriving the claim amount payable.
Recovery after claim submission
Any recovery received by the Insured as compensation for his/her losses as a result of the Attack shall be excluded from the claim payments.
Challenge of Claim Decision
If the Insured or any Nsure token holder(s) object to either the claim decision (accept/reject) or the claim amount payable of any claim case, he may raise a challenge. A challenge must be submitted within 48 hours after the claim decision being made, otherwise will not be accepted. Once a challenge successfully raised will lead to a 3-day public vote by all Nsure token holders, the result of which shall be the final decision for the claim.
This Cover shall terminate the coverage immediately when:
A claim under this Cover is submitted and approved, regardless of the amount paid on the claim; or
The Period of Insurance ends.
Proof of loss must be submitted within 3 days after the occurrence of the Attack. Any claim request raised thereafter is invalid and will not be accepted.
The first claimed filed is free of charge. Starting from the second claim request, the Insured shall pay Claim Assessment Fee to cover the cost of loss investigation by the Claim Adjusters.
Attack means hack, exploitation, or other malicious attack to the Designated Smart Contract that results into loss to Insured's fund, against which the Insured files a claim.
Designated Smart Contract means a single smart contract or group of directly related smart contracts, as specified in the Cover, running on the public Ethereum network excluding any outside inputs to that system such as oracles, miners, the underlying Ethereum network and individuals or groups of individuals interacting with the system.
Period of Insurance means the period specified in the Cover during which time the Cover is effective. Period of Insurance must start on or after the date of premium payment.
Cover Cryptocurrency means the cryptocurrency specified in the Cover by which the premium is paid and the claims (if any) shall be paid to the Insured.
Cover Limit means the maximum amount payable by the Cover as specified in the Cover.