Thank you for checking out Solace. Below are the details concerning different policy options along with the process and procedures. While Solace DAO provides a set of standard terms and conditions, please note that Solace v2 protocol allows protocols and DAOs to have a custom made T&C with respect to their coverage policy. If you have any questions please contact us on twitter or discord and we can provide further clarity. With respect to standard policy terms, Solace DAO reserves the right to update the terms and conditions at any time.
Policy’s effective coverage limit is set by the amount of capital underwriting the policy. Policyholders set the requested coverage limit and load the policy with a premium, which underwriters can then back and generate yield from. However, the effective coverage limit will be dynamic and equal to the the amount of underwriting capital allocated to the policy. Policyholders only pay the amount of premium based on the effective coverage limit, but can further incentivize underwriters to take on the risk and underwrite the policy.
Smart Contract Coverage is based upon prepayment of a cover policy premiums. This premium balance is then gradually used to secure the coverage limit and protect the smart contract(s). As long as there is a premium balance and an underwriting capital backing the policy, the coverage is active. Cover shall terminate and will no longer be active when the prepaid policy premium hits a zero balance, or the underwriters withdraw the backing.
Cover policies have a minimum duration of three months and maximum of one year. The start of coverage will be as follows. If the covered smart contract(s) are on the same blockchain where the policy is activated, the policy will take effect in the next block once the policy has been funded. If the covered smart contract(s) are on a different blockchain from where the policy is activated, the coverage will take effect 60 minutes after the timestamp of the block where the cover funding transaction is first confirmed.
Solace does not guarantee that the website or application, or any content on it, will always be available or uninterrupted. Access may be interrupted, suspended or restricted, including because of a fault, error or unforeseen circumstances and/or because of maintenance.
Smart Contract Coverage provides protection agains technical risks (i.e., smart contract exploits and hacks) for audited smart contracts only. These include, but not limited to, all of the following:
Claims for the following will be denied:
Cover is provided for smart contracts that have been audited, and listed in the policy. Redeploying or upgrading one of more smart contracts voids the cover policy and must be updated.
A claim payout will only cover losses actually incurred where such losses do not exceed the Cover Limit in effect at the time of exploit. Calculation of actual loss shall be done by examining the assets in question at the time when the loss occurred based on data extracted from block explorers, CoinGecko, CoinMarketCap, or any other sources regarded as reliable and fair. Any recovered losses received as compensation for the losses shall be excluded from the claim payment and not considered part of the loss amount.
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