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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