The purpose of this document is to illustrate the general terms and conditions of Tidal insurance coverage. It serves as a reference document for any platform users, cover buyers, reserve providers, token holders, claim accessors, and all other relevant community stakeholders. Please be noted that this guideline is not hardcoded into the Tidal Protocol.
Subject to the Exclusion Section, the claim shall be payable for any one of the followings:
The designated smart contract was used in an unintended way; or
The designated smart contract suffered hacks or exploitation of the protocol code for any bug that was not publicly disclosed before the coverage period began; or
The designated smart contract suffered economic design failure (including flash loan attacks) resulting in the unintended confiscation or seizure of funds deposited; or
The designated smart contract suffered severe oracle failure where the oracle price is deliberately manipulated or materially different from the intended data source; or
The designated smart contract suffered a governance attack where the on-chain governance system was manipulated and resulted in the unintended alteration of the designated protocol.
The claim is not payable for any one of the followings:
Loss of funds occurred due to phishing, private key security breaches, malware, scam, or any negligence on behalf of the user; or
Hacks occurred during the coverage period with the exploited bug of the designated smart contract being sufficiently publicly disclosed prior to the beginning of the coverage period; or
Rewards or incentives were not to be distributed to a user(s) wallet address; or
An attack, manipulation, or exploitation was executed entirely or partly by the insured party; or
Loss of funds occurred where the designated protocol continued to operate as intended.
For a claimant to be eligible of submitting a claim, the followings must be met:
The event or loss happens during the coverage period.
The payout receiving account and amount is validated by victim protocols, paid directly to the victim protocol team’s verified account that purchased cover.