Risk Assessment

Risk management is key to ensure a sustainable business model on InsurAce.io and guarantees the return on investment and protection. InsurAce.io introduces a three-step risk assessment approach for investment and protection protocols and buckets them into different risk categories.

Expert Assessment

The InsurAce.io Advisory Board will perform a preliminary risk assessment on the new protocols at first with a focus on the 5 perspectives listed below:

  • Project Implementation;

  • Project Operation;

  • Founding team qualifications;

  • Audit;

  • Code Quality;

Meanwhile, InsurAce.io will also work with professional security auditing firms to seek their support if there is extra complexity or challenges in due course. After this, the Advisory Board will provide an assessment report and recommended a Security Rating (1 to 5) as a reference to help our community get a better understanding of the underlying risk of each project.

Find here our Security Rating Methodology.

Community Assessment

After the Advisory Board assessment, the protocol to be listed will also need to go through a community-driven risk assessment conducted by volunteered community members to evaluate further and get a Security Rating. The members who participate in this process will get INSUR tokens as incentives.

A final Security Rating will be given to the protocol with the above two steps.

Continuous Update

Once the protocols are listed, we will employ the preparatory risk models to continuously evaluate risk levels by collecting data and information of the given protocol, such as the staking changes, the claims to the protocol, correlation analysis to new security incidents, and more. Such updates will be reflected in the existing risk model and provide up-to-date risk assessments.

Based on the above risk assessment, protocols are bucked into different risk categories to construct an investment or insurance staking pool with different returns.