Is there ELI5 explanation of how such insurance will work in practice?
If I had my funds insured and the exchange was hacked - how do I make a claim? Who and how decide on whether I get paid and when?
Hi
Our oracles will be monitoring the exchanges, so in essence you won't need to make a claim. If the exchange confirms that it's been hacked and the losses are calculated and confirmed, you will be covered automatically. Please note, we are not going to insure your particular account but the entire platform (including your acc of course); meaning that if only your acc is hacked but the exchange itself is not affected, we won't cover your losses.
OK, thanks for replying.
1 Could you provide more details on your oracles?
2 Will you cover only bitcoin holdings (or other specified altcoins) or every crypto. What if someone steals only some obscure altcoin from exchange? Will you cover bitcoin equivalent? If so, how would you determine the price?
3 What if exchange gets hacked but loses only small part of bitcoins and exchange promised to cover the losses themselves?
4 If I wanted to insure say 100 btc on exchange, will you be verifying that I actually own such balance, or will you just take my word and charge me appropriate premium?
5 Will you only accept insurance for holdings at major, established exchanges/businesses or any?
6 How will you determine my compensation amount if exchange gets hacked and loses only part of their funds? I'd expect to be paid proportionally (ie if exchange loses 10% of their funds, I'd get 10% of the amount insured) but how will you know what are the total funds of the exchange etc?
The answers:
1 Look pls here:
https://medium.com/@inchain/some-explanation-about-oracles-from-our-architect-andrey-zamovsky-www-facebook-com-nixoid-3921b0bc580c2 We plan to cover BTC & ETH accounts only from the start. And if other altcoins are stolen - it's not an Inchain insurance case.
3 If insured has no loses then no compensation.
4 No, the verifying of this is very difficult task. We charge an appropriate insurance premium from the insured and we do not verify has the insured the money that he insures.
5 I think it depends on insurance rank of the service. If we see a major exchange has a very low insurance rank we will not offer to insure accounts on them. And vice versa.
6 Firstly, the Inchain strategy includes an establishment of shared and clear rules for cases when exchanges are hacked. This rules must be accepted by all exchanges/wallets that participate in Inchain insurance. These rules require a fully transparent info about a hack and losses from exchanges/wallets, also all losses must be spread evenly among exchange's users of a hacked cryptocurrency. A good example of this case is the Bitfinex case.
For now, almost every hack is transparent enough to understand how much assets lost.
