ETH2.0 Slashing Coverage

This policy covers the ETH slashing loss occurred on StaFi protocol on Ethereum

Policy Duration:

The policy's duration is expressed in weeks and begins at 0:00 UTC on the chosen start date (Sunday) and ends at 0:00 UTC on the chosen end date (Sunday).

Payout condition:

In the event of slashing losses, policyholders will receive compensation up to their maximum coverage amount. This covers most common slashing scenarios, where losses typically range from 0.01% to 3.3% of staked ETH.

However, in an extreme scenario where slashing losses exceed 3.3% of total staked ETH, there could potentially be insufficient collateral to fully compensate all policyholders. Though unlikely, this "collateral shortfall" situation could occur if an unusually large slashing event impacts the insurance pool.

If a collateral shortfall does materially emerge, any available insurance collateral will be distributed proportionally among policyholders based on their coverage amounts. Payouts would cover a portion of losses in this unlikely scenario, providing partial protection.

Rest assured, major slashing events resulting in losses above 3.3% have not occurred before, and diligent validator selection makes them improbable. But no insurance can eliminate all risks entirely. This policy aims to strike a practical balance between comprehensively covering foreseeable risks and maintaining sustainable, cost-efficient protection.

Refund:

Additionally, policyholders are eligible for a return if the required collateral amount is less than the outstanding insurance amount. Such a scenario could be triggered by a large payout, for example. The unprotected amount will be automatically repaid to policyholders' wallets every week until adequate collateral deposits are made to cover the outstanding policies.

Claim submission:

Claims can be submitted on-chain, and pool managers will be notified to conduct a payout.