A few more questions
I know its a though question, but what do you estimate the total insurred amount will be a year after launch? $1m, $10m or more?
From your explanation it looks like a bonds holders will take all the risk of a single person. E.g. my 10 BTC insures your 10 BTC, so if you lose yours I will only get what you paid for the insurance (minus fees) and will be left with a loss og 9.x BTC.
Have you considered to pooling bonds in the same risk group?
Using the same example but using a pool of lets say 100 BTC every bond holder would lose only about 5%. The risk of losing money would of course also be 10 times greater but it would make buying a bond much less of a gamble.
It might already be this way but it wasnt really clear from your examples.
Great questions!
We expect 1-5% of the total market insured. Say if we start with 10 exchanges, we can reach something around $10M in 1-2 years.
Regarding bonds, your are right, the pools are very interesting concept, even though it depends on bond investors' risk appetites.
We might offer two types of bonds, one is linked to a certain insurance policy and the second one is more like an investment product consisting of fractions of different bonds.
For example, we insure accounts of 10 exchanges. So every such bond consists of 1/10 of ten bonds associated with these 10 exchanges.
Say the coupon is 10%. If one exchange is compromised you lose 10%, which is equal to your coupon meaning that you lose only your return. This is far less riskier.
If you prefer a "gamble style" and happy not to diversify risks, it is also possible.
Soon we will present a fin model so everybody can play with numbers a bit.
Keep asking questions, please
