Catastrophic Events
These are any events or forces of nature which lead to catastrophes. In DeFi insurance, any event leading to irrecoverable loss of your assets should be treated as a catastrophe. Therefore, we cover the following unpredictable events:

Stablecoin loss of peg

Unpredictable market factors affect the value of commodities stablecoins peg to.

Protocol hacks

Protocol hacks are a common risk event in DeFi. Usually, hackers exploit a weakness in the protocol’s security, compromising the protocol.

Smart contract risks

Code errors and bugs are just some of the risks associated with smart contracts. In some cases, developers overlook or miss an erroneous line of code or deploy smart contracts with bugs. These errors in code can lead to massive losses when exploited.


This is a coordinated attack resulting from compromised node infrastructure with the potential to wipe out a large amount of stake offline. It usually leaves the attacker(s) with more stake compared to the rest of the community.
Our risk coverage will grow as our understanding of the market improves through the Risk Analysis Database (RAD).
Last modified 1mo ago