Bright Union
  • Welcome
  • Buying Cover
    • Why Buy a Cover
    • How to Buy a Cover on Bright Union
    • Benefits of Bright Union
    • Chains, multi chain
    • Cover types
    • Understand the Specifics of Each Coverage
    • Claims processes
  • How to
    • Buy BRIGHT
  • Developers
    • Integration
  • FAQ
    • FAQ - Buy Cover
  • Terms & Conditions
  • Contact Us
    • Questions
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On this page
  • What is a cover?
  • What is the role of Bright Union?
  • What covers does Bright Union offer
  • What determines Cover availability?
  • Who is responsible to pay a claim if the protocol I covered is hacked?

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  1. FAQ

FAQ - Buy Cover

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Last updated 1 month ago

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What is a cover?

A Cover is a decentralized alternative to an insurance policy. It is not the same as insurance because it is a permissionless process where anyone from the community can provide the required capital. The rules of the cover are executed by a smart contract on the blockchain.

What is the role of Bright Union?

Bright Union is a protocol which helps customer buy and manage their covers from a single place. In case a claimable event happens , the risk platform and not Bright Union is liable for the payment of the claim.

What covers does Bright Union offer

The cover types are described on this page:

What determines Cover availability?

The risk platforms determine whether a cover for a certain protocol is added based on an admission or whitelisting process. Usually the (code) quality of the protocols before it is offered for sale. In order to buy a cover the community must have provided sufficient cover capital so claims can be paid in case of a claimable event. In case there is limited capital available it might not be possible to buy a certain cover or a higher price will be demanded.

Who is responsible to pay a claim if the protocol I covered is hacked?

Once a claim is approved (link to claims process) the claim will be paid out from the capital provided by the community. Each risk platform has a different approach to managing and leveraging the capital provided by the community.

https://docs.brightunion.io/buying-coverage/cover-types