The Insurance Fund

Insurance Fund

The insurance fund is used to pay for the losses of investors who deposit into the InsuranceFi Vault. The fund not only receives from the cost of the insurance package, but is also filled by a variety of sources, to ensure that the fund is sufficient to compensate investors.

1. Insurance Contract Fee

Is the cost of buying an insurance package when an investor participates in staking in the InsuranceFi Vault, the initial cost is set at 10% (increase with higher lock time) and may change depending on the time and according to the protocol's calculation.

2. Tax From Trading Volume

1% from buying tax and 1% from selling tax will be transferred to the insurance fund

3. 20% of The IF Tokens in The Total Supply

There will be a total of 20% of The IF tokens in the total supply being vested to ensure that the insurance fund is always full

4. Insurance Liquidation

At each time there will be an increase in the price causing the insurance contract to be liquidated. the protocol is calculating by default the price increase leading to contract liquidation is 50%. i.e. if you sign an insurance policy and deposit at IF/BNB=A, and after IF/BNB goes up and puts 1.5A, your insurance policy will be liquidated and your staking plan will not be insured, this ensures the insurance fund is always filled, but you can completely early unlock the staking package and take profits. Thus, profitable investors will also pay a portion of the deduction to the insurance fund, helping losers to be better protected.

5. Early Unlock Fee

If you unstake earlier than the lock time of the staking package, you will lose 10% of the original IF stake, and if you choose the insurance package, it will not be effective when you unstake. Thus, the penalty fee for early unlocking and the liquidation insurance package will go to the insurance fund and increase the level of protection for investors who stay with the project.