# Welcome
Bright Union - Make risk markets work
Bright Union was founded in February 2021. We are on the mission to make risk markets work for the crypto space. We are a collection of experts in crypto, technology and insurance ready to bring web3.0 to the insurance industry.
# Why Buy a Cover
In the world of DeFi, risks such as protocol hacks, wallet breaks, and stablecoin depegging are on the rise. While the potential for high returns is thrilling, losing your assets due to unforeseen events can be devastating.
**Buying a cover (insurance)** is a smart way to protect your investments and gain peace of mind. It ensures that even if something goes wrong, you have a safety net to recover your losses. Think of it as a shield for your crypto assets, enabling you to confidently explore DeFi opportunities without constantly worrying about risks.
With an increase of **30% hacks on DeFi platforms in 2024**, having insurance is more important than ever. Secure your assets today and invest with confidence. Bright Union allows searching the DeFi positions by the wallet address, and finds the best coverage possible.
### Algorithm for searching
| Step | Comment |
| ------------------------------------ | ----------------------------------------------------------------------------------------------------------------- |
| DeFi positions by the wallet address | The search is performed cross multiple EVM chains, such as Ethereum, Base, Optimism, Arbitrum, etc |
| Highest exposure, USD denominated | There is one 'Cover amount' for the whole portfolio, we look for the highest exposure the wallet has, in USD |
| Best product on the market | We look cross chains, cross risk providers to find the best coverage product that would cover the whole portfolio |
| Optional: Add an extra protocol | The user can add an extra protocol to be included into the coverage |
# How to Buy a Cover on Bright Union
Bright Union makes it simple and affordable to purchase a cover for your crypto assets. Follow these steps to secure your investments:
1. **Visit the Bright Union App** Go to . Or click on the right side of our [website](https://brightunion.io/) on OPEN APP.
2. **Connect your wallet** Go to the right side of the screen and click on connect your wallet.
Choose between your Email account, Social Media Platforms like X (former Twitter), Discord etc., or connect Wallet Connect, MetaMask, Trust Wallet or 440 more wallet providers.
Need help? Check out this [video tutorial.](https://www.youtube.com/watch?v=fOO7XNuA3Ak)
3. **Select the Protocol or Bundle** Browse the list of available protocols or assets you want to ensure. Bright Union covers over 150+ protocols across 15+ chains, so you´ll likely find what you need.
4. **Set Your Amount and Duration**
Enter the amount you want to insure and the duration of the cover. The platform will calculate
the premium (cost) based on your selections. Choose between USD or ETH, as a form of
payment.
Want to cover multiple protocols? No problem- Just click on **+** Protocol to cover and add them to your cover.
5. **Review and Confirm**
Double-check all the details, including the cost, coverage terms, and duration. Once satisfied, confirm your purchase, read the [terms & conditions](https://docs.brightunion.io/terms-and-conditions?_gl=1*11zg3yd*_ga*MTIwMjYyNDIyNy4xNzQwNDEwNjM1*_ga_KCNQQRKDP7*MTc0NDI3Mzg1Ni43LjEuMTc0NDI3NDIwNS4wLjAuMA..). If you did that, click on **BUY COVER**.
# Benefits of Bright Union
### Why Choose Bright Union for Your DeFi Coverage?
Bright Union stands at the forefront of decentralized insurance, delivering unparalleled protection for your crypto assets. Here’s why our platform is the best choice for safeguarding your investments:
#### Comprehensive and Affordable Protection
* **Widest Range of Coverage**: Access insurance for over 150 protocols, including popular DeFi platforms like Uniswap and Curve.
* **Cost-Effective Solutions**: Benefit from the largest offer with the lowest premiums, ensuring you get comprehensive coverage without breaking the bank.
#### Seamless and Simple Process
* **Effortless Purchase**: Buy and manage your insurance covers in just a few clicks. Our user-friendly interface ensures a hassle-free experience with no hidden fees.
* **No KYC Requirement**: Enjoy a faster, more private process compared to other providers.
#### Extensive Coverage Options
* **Multi-Chain Risk Protection**: Secure your investments against protocol hacks and rug pulls.
* **Custodian and Stablecoin Covers**: Protect against unforeseen events like custodian failures and stablecoin depegging.
* **Yield Protection**: Safeguard your yield-earning investments from depegging risks.
#### Peace of Mind
* **Reliable Security**: Rest easy knowing your assets are protected in the volatile DeFi landscape.
* **Community Trust**: Our partners have paid over $20M in claims, demonstrating our commitment to reliability and trustworthiness.
Bright Union provides a robust and flexible insurance solution, ensuring your digital assets are secure and your peace of mind is assured. Explore our offerings today and join a community that values safety and transparency in the ever-evolving world of DeFi.
# Chains, multi chain
Global Risk chain
Bright Union app implements the concept of [Global Risk Chain](https://brightunion.io/blog/risk-chain.html) introduced by the team in 2024.
The concept enables multiple use cases, and first of them - allowing sales of DeFi covers cross multiple EVMs. Regardless of where the cover is purchased, it will be:
* fulfilled on the chain where the underwriting capital pool is located
* the cover will protect the user's wallet against risks on **all** EVMs
Example: *Vitalik has purchased a cover protecting his $500k investments on Aave V3, Balancer V4 and Hyperliquid, for 90 days. He's purchased it on Gnosis chain, paying $500 Gnosis USDs. From that moment he is 100% covered on **every** EVM where these protocols exist. Under the hood, the underwriting capital ($500k) actually resides on Ethereum, and that's where the cover was fulfilled.*
# Cover types
There are various types of available covers
Each decentralized project is subject to a different type of risk which needs to be covered. The table shows an overview of what risks can be covered by different types of products.\
\
If you want to learn more, explore this Medium article:
| Cover types | What risk is covered? | Example projects |
| ------------------------- | ----------------------------------------------------------------------------------------------------------------- | ----------------- |
| Protocol hack and failure | In case the user has financial loss due to failure of the protocol caused by code, governance and oracle failures | Compound, Uniswap |
| Yield de-pegging | In case the market price of a yield tokens deviates from the face value for a significant amount of time | Curve, Yearn |
| Stablecoin de-pegging | In case the market price of a stable coin deviates from the underlying currency for a significant amount of time | DAI, USDT |
| Custodian Cover | Protects against hacks and halted withdrawals at crypto wallets | Binance, Kraken |
#### Why Are Various Types of DeFi Coverage Needed?
At Bright Union, we recognize the diverse challenges within DeFi, necessitating distinct coverage solutions. Here’s how we address these unique risks:
* **DeFi Protocol Challenges**: Engaging with DeFi protocols means you manage your own digital assets. The primary concerns are technical, such as code errors or system failures. Our coverage is tailored to mitigate these technological risks.
* **Peg Stability Concerns**: For assets linked to another value, the risk lies in losing this connection, as seen when UST detached from the US dollar. This can result in losses without any protocol issues. Our coverage ensures protection against such peg disruptions.
* **Custodial Storage Issues**: When assets are stored by custodians, risks include poor management, cyber threats, or restricted access. Our custodial coverage safeguards against these vulnerabilities.
#### How to Safeguard Against Multiple Risks?
To achieve comprehensive protection, multiple coverage types or bundled solutions may be necessary. At Bright Union, we provide customized options:
* **Protocol Coverage**: Protects against losses due to technical failures or security breaches.
* **Peg Stability Coverage**: Secures against losses from deviations in asset value connections.
* **Custodial Coverage**: Defends against mismanagement and unauthorized access.
Discover our coverage plans to fully protect your assets in the dynamic DeFi environment.
# Understand the Specifics of Each Coverage
While covers within the same category, like Protocol Cover, often address similar risks, their details and effectiveness can vary. Here’s what to consider:
* **Protocol Coverage**: Evaluate the specific events covered, the reimbursement percentage for lost funds, whether it includes integrated protocols, and the claims process.
* **Stablecoin Depeg Coverage**: Check what constitutes a depeg event, the reimbursement rate for losses, and the timeframe for filing claims.
#### Coverage for Multiple Smart Contracts
Some DeFi protocols enhance their functionality by integrating with others. For instance, mStable collaborates with Aave for better yields. It's important to know whether your Protocol Cover extends to losses from these integrated smart contracts.
#### Ensuring Proper Chain or Version Coverage
Protocols often operate across multiple chains or have different versions (e.g., Uniswap V1 vs. V2). Ensure your coverage matches the chain and version you’re using. Understand how coverage on a different chain might impact the claims process and your eligibility.
#### Bundled Coverage Options
Some DeFi insurance providers offer bundled coverage solutions. For example, if you’re earning yield on a stablecoin within a DeFi protocol, you might consider purchasing both Stablecoin Depeg Cover and Protocol Cover together for comprehensive protection.
# Claims processes
When you get hacked in the DeFi space, the most important thing for users is a fair claims process, which is simple and can be resolved quickly. These users want their refunds fast, so they don’t miss the next investment opportunity. Overall, a transparent and democratic process is required to ensure that the right incentives are involved and that fraudulent parties are unable to manipulate the process.
The community stakes their funds in insurance risk pools. Since the staked money is used to pay out claims in the event of hacks or losses, the governance over these funds must be very robust. Legitimate claims need to be paid out fast, and illegitimate payouts need to be avoided.
The covers underwritten by Nexus Mutual would have the following claiming process:
**Claim Assessment Overview**
When a loss event happens, active cover holders can submit a claim. After submission, members can stake NXM to participate as claim assessors, who verify the claim's validity. To date, over $18M in claims have been paid out.
**Claim Process**
1. **Claim Submission**:
* Cover holders can submit a claim via the Nexus Mutual interface, providing details of the loss incident and proof.
* A claim deposit in ETH is required, which is refunded if the claim is approved; it is not refunded if denied. Minimum deposit is 0.05 ETH, with a maximum based on 50 NXM.
* Claim deposits reduce spam, allowing multiple claims as long as a deposit is made.
2. **Voting Process**:
* After submission, the vote lasts at least three days. Claim assessors stake NXM for 90 days post-voting.
* A majority (50%+) is needed to approve a claim. A 24-hour silent period follows the last vote, and any last-minute votes can extend the voting period.
3. **Claim Payouts**:
* After a successful vote, a one-day cool-down period occurs before the payout can be redeemed within 30 days.
**Fraudulent Votes**:\
During the cool-down, claims can be reviewed for fraud. If found, the voting assessor's stake is burned, and their vote is reversed, with processing open to any member.
**Which Process is the Best?**
#### Choosing the Optimal Claims Assessment Process
Selecting the best claims assessment process involves understanding the level of automation and transparency involved. Here’s what to consider:
* **Automation Benefits**: Automated claim assessments are typically faster and more objective. However, not all covers can utilize automated methods. For instance, custodial platforms often lack open-source smart contracts, making parametric custody cover impractical.
* **Variations in Provider Approaches**: Even among providers using similar assessment mechanisms, differences may exist in how they encourage fair evaluations. It's important to understand these nuances.
#### Key Factors to Evaluate
When assessing a provider’s claims process, consider:
* **Transparency**: How public are the approvals and denials of claims?
* **Automation Level**: What portion of the process is automated?
* **Decision Authority**: Who has the power to approve or deny claims?
These elements will help you determine the most efficient and fair claims assessment process for your needs.
# Buy BRIGHT
Be part of the success of Bright Union
### What is the BRIGHT token?
BRIGHT is a utility token (a.k.a. crypto currency) which can be traded with anyone on the blockchain. The token is the foundation of the Bright Union Protocol and will help Bright Union to accelerate the entire market for decentralized risk products.
Why buy BRIGHT tokens:
* **Share in the success of Bright Union**: Part off the sales proceeds will be used to buy-back BRIGHT tokens in the market
* **Empower the industry**: The treasury of Bright Union will be used to invest in risk pools of various risk platforms to accelerate the crypto risk markets and earn a return
* **Join the Union**: Users who stake BRIGHT tokens can vote on various important decisions regarding the platform (coming soon)
* **Membership access**: Users who stake BRIGHT tokens can enjoy priority access to our regular products and are eligible for Bright Union’s premium services (coming soon)
(More details on BRIGHT tokens can be found [here](https://brightunion.medium.com/?p=25cf02545c31))
### How to buy BRIGHT tokens?
BRIGHT tokens can be swapped on CowSwap, a decentralized trading platform on multiple blockchains.
### **Buy BRIGHT on CowSwap (See screenshots below)**
1. Ensure prerequisites are in order (Scroll down to learn how to install MetaMask and buy Ether)
2. Go to the CowSwap page to exchange ETH to BRIGHT([link ](https://swap.cow.fi/#/1/swap/WETH/0xbeab712832112bd7664226db7cd025b153d3af55)to CowSwap page)
3. Press "Connect to a wallet" in the top-right corner and select metamask
4. Login to MetaMask with your password and select the account holding your Ether tokens
5. Select the amount of Ether (top) to swap against BRIGHT (Bottom)
6. Confirm Swap in CowSwap interface
7. Confirm transaction in MetaMask wallet
8. Add BRIGHT to your Metamask wallet for easy tracking
9. Confirm transaction in "Activity" section of Metamask
10. Congratulations! You are a proud owner of your first BRIGHT tokens
\`
###
# Integration
Bright Union has the goal to help developers connect to the entire DeFi insurance landscape in the easiest way possible. Instead of building and maintaining integrations with multiple risk platforms you only have to worry about a single integration. On top of that, we add the possibility to always find the best offer across all risk platforms.
**@brightunion/sdk javascript integration:** We make your life easy in case you are looking to integrate decentralized insurance into your application. The Bright.js library will make it possible to easily interact with our contracts on any chain.
`The SDK is coming soon, please follow the news in the` [`telegram channel`](http://t.me/brightunion)
# FAQ - Buy Cover
## 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.
##
# Terms & Conditions
I understand that Bright Union solely acts as intermediary for the coverage offering platform, that I don’t enter into a legal relationship with Bright Union and that Bright Union cannot be held accountable for any claim, loss or damages in relation to the purchased coverage. I do not enter into any relationship with Bright Union in respect of the coverage but solely with the platform offering the coverage, Bright Union aims to ensure that all information displayed on the website is accurate and not misleading (including information provided by third parties, product information, comparison information and all other product related information), but that Bright Union cannot and doesn’t guarantee the accurateness of the information displayed, and that any and all decisions and acts based on the information provided by Bright Union are for my sole risk and account.
Further I understand and agree that I irrevocably and unconditionally:
* (i) shall hold Bright Union harmless from any claims from the offering platform and its Affiliates in relation to the purchased coverage and any claims related thereto;
* (ii) agree not to commence or initiate, as well as assist, advise or cooperate with any Person, in any claim, lawsuit or otherwise against Bright Union and its Affiliates in relation to the coverage purchased at the offering platform and any claims in relation thereto.
# Questions
Have questions about Bright Union? We're here to help!
\- Email: Reach out to us at .
\- Telegram: Follow our [Telegram channel](https://t.me/brightunion) for updates and support.
We look forward to connecting with you!
