Introduction to DeFi covers
Decentralized risk products are new, complex and continuously evolving. Therefore, there is need for a credible third party to create – together with the community – an independent and fair assessment of these products.
Bright Union allows comparison of coverages across multiple risk products.
Criteria for comparison
Criteria | Comment |
Price | The cost of buying a risk coverage (in percentage of the total amount) |
KYC | The requirements for KYC (Know Your Customer) is different per risk platform. Some platforms require users to submit their passport and address for confirmation before products can be used |
Exclusions | The risk platform has defined certain scenario's in which a claim will not be accepted (e.g. the user is at fault for the loss of funds) |
Min contract duration period | Minimum contract duration in days a risk platform offers users to buy. |
Capital Requirement | Risk platforms have requirements of how much the staked capital in a coverage must be before a user can buy a cover |
Network | The blockchain network on which the smart contract is added upon buying the coverage |
Requirements for claims submission | In case the user whishes to submit a claim some documentation is to be added as proof. |
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