Stablecoin De-Peg Cover Terms and Conditions

With effect from 17th April 2024

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1. General

The purpose of this document is to outline the terms and conditions of the Stablecoin De-Peg Cover offered by UnoRe.

1.1

By purchasing the Cover, you unequivocally accept and agree to be bound by the terms and conditions herein (“Terms”).

1.2

The Cover is provided by the Protocol. In the Terms:

• “you”, “your” refers to you if you are a Cover Purchaser and/or Claimant and/or Covered (where applicable).
• “will”, “must”, “shall” indicate a mandatory requirement.

1.3

The Protocol may amend the Terms from time to time without prior notice to you.

• The Protocol will use commercially reasonable efforts to communicate material amendments through social media accounts and/or official channels.
• It is your responsibility to check the latest version before purchasing or continuing with the Cover.
• If you continue with the Cover after amendments, you are deemed to have agreed to the amended Terms.

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2. Coverage

UnoRe will provide coverage on the designated Stablecoin in case the USD-pegged stablecoin de-pegs from its US Dollar reference and trades below peg.

• Your financial loss, in the case of a proven de-peg, shall be compensated in the SSIP pool asset(s) according to the capital of the pool(s) in relation to the claim amount.
• Distribution shall happen immediately upon claim approval and usually within 10 working days of claim submission.

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3. Claim Conditions

A claim shall be payable under the following conditions:

1. A financial loss occurs due to a stablecoin de-peg, where it trades below an indicated threshold (see Table 1) on CMC, Coingecko, or other trusted sources; and
2. The loss on the designated stablecoin results in a TWAP (Time-weighted average price) below the threshold (Table 1) for at least 10 consecutive days; and
3. The loss is related to the wallet address used to purchase the cover; and
4. The loss occurred during the Cover Period; and
5. A claim is submitted during the Cover Period or within 7 days after the cover expires; and
6. A claim is submitted within 72 hours of the incident.

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Table 1: Stablecoin De-Peg Thresholds

Stablecoin	De-peg Threshold
USDT	$0.950
USDC	$0.950
DAI	$0.950
FRAX	$0.880
MIM	$0.880

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4. Exclusions

A claim will not be paid under the following conditions:

4.1 Cause of loss is due to:

• Private key security breach, phishing, malware, or exchange transaction hacks; or
• Any type of hack or malicious activity where the stablecoin smart contract is not exploited.

4.2–4.11 Other exclusions:

• Intentional actions using the stablecoin smart contract with intent to claim under this policy.
• Financial loss related to a hack or bug disclosed publicly before the policy period.
• Financial loss related to arbitrage exploit due to false business logic in the code.
• Financial loss related to external inputs (e.g., oracles, price-feed manipulation, miner misbehavior, network congestion) while the stablecoin smart contract behaves as expected.
• Loss related to an attack vector documented in the stablecoin’s whitepaper/documentation.
• Financial loss related to decentralized governance abuse or admin key misuse.
• Smart contracts generated solely for fraudulent claims.
• Policies purchased after exploit events will not be eligible for claims.
• Incidents/claims that occur within 72 hours of policy purchase.
• If there is a reimbursement plan or intent to reimburse by the exploited protocol’s team.

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5. Conditions

5.1 Recovery after Claim Submission

Any recovery received by the Covered as compensation for losses due to the de-peg shall be deducted from the claim payments.

5.2 Challenge of Claim Decision

All claims are paid as per policy terms. The UnoRe UMA Oracle, with fallback to ClaimsDAO, has the final say on claim payouts.

5.3 Cover Termination

• 5.3.1 The Cover for a particular stablecoin terminates once the Cover Period ends (policy schedule).
• 5.3.2 The Cover terminates when a claim has been registered under that particular stablecoin.

5.4 Disclaimer

• 5.4.1 The Protocol aims to maintain sufficient capital, but coverage does not guarantee full payout, particularly if pool capital is insufficient.
• 5.4.2 The Protocol is not licensed or regulated in any jurisdiction.
• 5.4.3 This Cover is not insurance. It is discretionary protection provided to purchasers, with the DAO having final discretion on claims.
• 5.4.4 The DAO reserves the right to rescind coverage within 72 hours of purchase, refunding premiums.

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6. Definitions

• Cover Period: The period for which the cover has been bought and is valid.

• Material Loss: A loss that goes beyond the gas-related costs of operating the contract.

• Designated Stablecoin: Stablecoin specified in the cover (single contract or group of contracts running on public blockchain).

  Note: Outside inputs (e.g., oracles, miners, external users) are not included in the cover.

• Policy End Date: The date until which the Master Policy is valid; after this, the policy expires.

• Policy Start Date: The date from which the policy cover starts (purchase date by the user).

• Protocol: The UnoRe protocol.