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Bridge Mutual claims process
Bridge Mutual has hit the market in July. Since, they have paid out their first claim on August 4th for $50.000. They have clearly learned from their peers which launched earlier and introduced some innovations to the claim process:
The first innovation is the appeal process. This approach is clever because it really gives reassurance to the users to know that if the community makes an erroneous vote, there still is a possibility for them to claim their money. Even though, over the last 9 months, no errors have been made across all risk platforms, we believe it’s a valid innovation as it creates trust for the user.
Smart contract and exchange claims go through the following multi-stage process:
  1. 1.
    You are hacked and submit a claim for a refund
  2. 2.
    The claim is voted on by Policy Holders of the same asset. A simple majority (more than 51%) is consensus. (For example, Anchor gets hacked. Person A submits a claim saying that they have lost $500, person B lost $5m and person C lost $5k. These policy holders can vote on each other’s claims, providing legitimizing these claims before the ‘actual’ vote). If the vote is under 51%, the claim is abandoned.
  3. 3.
    The claim is voted on by users who stake BMI.
    1. 1.
      Again, a simple majority is needed for consensus
    2. 2.
      Voters are incentivized to vote in the majority, by being rewarded with BMI or penalised by having their BMI stake burnt.
      1. 1.
        In close voting calls (within 45-55%), minority voters are not penalised
      2. 2.
        The consensus is made after a roughly 3 hours [time period of 1001 blocks]
  4. 4.
    Claim is accepted or rejected
    1. 1.
      If the claim is rejected, the policy holder has the right to appeal
    2. 2.
      If the claim is accepted, the stakers who voted in the minority have the right to appeal. This group must be at least 25% of stakers.
    3. 3.
      Trusted stakeholders vote in both situations. Simple majority decides the outcome, resulting in a final rejection or final approval
  5. 5.
    Final Approval or Rejection information activates smart contract
Bridge Mutual claims process
Screenshot from Bridge Mutual claims submission form
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