Audits and insurance are not an either/or choice. They are risk defense tools on different levels and cannot substitute for each other. Audits answer the question "Is the code written correctly?" whil

A short claims history does not automatically mean an insurance protocol is reliable. On the other hand, a long claims record does not equal more reliability either. What you need to look at is the qu

The core tail risks underpinning insurance pool's unusually high yields are correlated attacks and the structural risk of claim denial. High returns aren't free — they are the market's pricing of thes

After a protocol upgrade, if the contract address changes, insurance coverage does not automatically continue. Based on the mechanism during the Nexus Mutual V2 upgrade, there is no automatic migratio

After moving to a new vault, your original policy will usually not cover the assets in the new vault. The key point is that protocols like Nexus Mutual insure "the funds you deposited at a specific ad

If an attack occurs before your on-chain insurance expires, the key to filing a claim is providing evidence that proves two things: the policy was active at the time of the attack, and you actually su

Parametric insurance auto-payouts depend on data sources like oracles. If the price data is off but meets the payout trigger, the policy will automatically transfer the money according to the terms. W

Whether "technical failure" in an insurance policy covers oracle failure depends on the specific insurance protocol and its product version. The latest practice is that some leading protocols have inc

There is no standard time for an exchange's withdrawal suspension to trigger insurance payout. Different policies vary widely. The key is whether the coverage covers a "technical failure" or an "insol

Cross-chain bridge insurance mainly covers technical failures like smart contract vulnerabilities and hacker attacks. However, private key theft is explicitly not considered a covered incident in most

When a DeFi insurance protocol's minimum capital dips too low, new policies simply cannot be purchased. The protocol enforces a hard limit—the Minimum Capital Requirement (MCR). If the capital pool si

Underwriting capacity keeps falling. On-chain funds are proactively avoiding protocols that have structural risk amplifiers built into their design—specifically, those with highly correlated risks tha

The same vulnerability can affect multiple protocols at once, and DeFi insurance pools could be wiped out. This isn't just a guess—it's one of the key risk scenarios when evaluating Nexus Mutual.Pool

Currently, this publicly disclosed cross-protocol common vulnerability has not yet triggered the full payout threshold of top DeFi insurance pools. Regular users do not need to immediately withdraw al

An insurance pool's total funds may look large, but the coverage you can actually buy for a specific protocol is still low. The core reason is the money in the pool isn't all allocated to that protoco

If your insurance claim is denied, your options for appeal depend on the platform. Decentralized insurance uses community votes, while centralized insurance relies on complaints to regulators. Both fa