ETH2.0 Validator Rewards Slashing Cover Terms and Conditions
With effect from 17th April 2024
1. General
The purpose of this document is to outline the terms and conditions of the ETH2.0 Validator Rewards Slashing 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 any 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.
2. Coverage
UnoRe will provide coverage to stakers in the event of ETH2 nodes facing slashing penalties, resulting in reduced yields for ETH stakers and lost ETH for delegators.
Financial losses incurred by validators shall be compensated in $ETH within 10 working days of claim submission.
3. Claim Conditions
The Reward Slashing Coverage applies on an epoch-by-epoch basis (~36 days):
- Missed rewards from being offline – all deductions on ETH2 Beacon Chain (including 0.1 ETH whistleblower penalty).
- Transactional rewards (execution rewards) missed as a result of being offline.
- Penalties halfway to the withdrawal date caused by unintended slashing.
- Cases where loss is irrecoverable, irreversible, with no means of repayment or recovery by any parties in the future.
Additional requirements:
- The loss must be related to the wallet address used to purchase the Cover.
- The loss must have occurred during the Cover Period.
- The claim must be submitted during the Cover Period or within 7 days after expiry.
- Validators must run at least 2 different ETH2 clients simultaneously (e.g., Lighthouse, Prysm, Teku, Nimbus).
Payout structure:
- For every 1 ETH in cover purchased, UnoRe will insure up to 0.094 ETH in missed rewards per epoch.
- A deductible of 0.05 ETH applies.
4. Exclusions
A claim will not be paid in the following cases:
- Loss due to private key breaches, malware, hacks, smart contract exploits, or software vulnerabilities.
- If 1000 or more validators are slashed within the Cover Period due to suspicions of collusion against the network.
- If 10% or more of total active validator nodes across all public staking pools go down due to widespread network downtime.
- If 10% or more of validator nodes are not in the active validator set.
- Missed rewards related to MEV (Maximal Extractable Value).
- Missed rewards due to technicalities before, during, or right after the merge of consensus and execution clients.
- False information, lies, or misleading claims.
- Validator keys of staking pools are stolen, tampered with, hacked, or exploited.
- Misconfigured nodes (e.g., 1 key pair shared by multiple validators).
- Slashing caused by ulterior motives of validators.
- Claims within 72 hours of policy start date.
- Losses from Virtual Private Servers (VPS) running ETH2 clients.
- Losses caused by government intervention or regulations hindering validator operations.
5. Conditions
5.1 Challenge of Claim Decision
All claims are paid as per policy terms. The UnoRe Claim DAO has the final decision on claim payouts.
5.2 Cover Termination
- 5.2.1 The Cover terminates once the Cover Period ends (as per policy schedule).
- 5.2.2 A pool will be eliminated from future coverage if:
a. A claim has been registered under that pool, or
b. The Cover Period ends.
- 5.2.3 Pools listed in the policy coverage and not exploited will continue post-elimination of affected pools.
5.3 Disclaimer
- 5.3.1 The Protocol aims to maintain sufficient capital, but coverage does not guarantee full payout, especially if pool capital is insufficient.
- 5.3.2 The Protocol is not licensed or regulated by any jurisdiction.
- 5.3.3 This Cover is not insurance. It offers discretionary protection, with the DAO having final discretion on payouts.
- 5.3.4 The DAO reserves the right to rescind coverage within 72 hours of purchase, refunding premiums.
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.
- 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.