Policy 2024 (Pilot)
Please note that this insurance policy is tailored specifically for holders of Pain NFTs within the Cardano ecosystem and contains detailed provisions and conditions to define the scope and limitation
Slowing All Pains: An insurance product by Pains.
Campaign Period Oct-1-2024 to Oct-1-2025
Insured
Holder of Pain NFT [ Growing Pains only]
Insurer
Pains Fund
Coverage
All risks exposed to the Growing Pains NFT holder while participating in the Cardano ecosystem – see exclusions.
Inception
Time of cover starts at time of purchase of any Growing Pain Cover
Waivor on of purchase to any Pain holder prior to the announcment ETA Oct-1-2024, but OG holders will need to fully register to be insured.
Expiry
12 months from inception, until the policy holder aggregates are depleted, or until the insurance pool is depleted whichever is first.
Wallet : $Pains – insurance funds can be found here. Aggregate: (check Pains’ Slowingpains.com website for your current cover-website under development, for now please check with Pains’ team)
Limits / Rarity
see table of limits and rarity below. Note: investigation costs are part of the loss limit, all losses are in the aggregate.
Share of loss and limits of cover (ADA)
Common
Rare
Epic
Legend
Share of loss
20%
30%
40%
50%
Limits
Hold 1 NFT
50
TBA
TBA
1000
Hold 2 NFts
100
TBA
TBA
2500
Hold 3 NFTs
150
TBA
TBA
4000
Reporting Period
Claims occurring during the period of insurance will have 100% of limit.
Retroactive period
Claims occurring prior to inception up to 2 months limits reduce to 50%.
Claims occurring prior to 2 month from inception and up to 10 moths limits reduced to 25% both across the board.
Examples (Active period 2024)
1.If the holder experienced an insurable loss e.g. Wallet Drain scam, and the Policy holder owned a Common Growing Pain NFT, and lost an amount of 400 ADA. The holder will be compensated 20% x 400 = ADA 80 but capped at 50 if he owns 1 common, but if he owns 2 commons then an amount of ADA 80 will be refunded..
2. If the holder experienced an insurance loss, and owned a legendary, and lost ADA 4000. The holder will be compensated 50% x 4000 = ADA 2000 but capped at ADA1000 if the holder only owned one legend and no other Growig Pains NFT, but if the holder owns another common, rare, or epic GP NFT his limit will increase to ADA 2500 and the claim amount refunded will be ADA 2000
Rarity table
Rarity
Trait
Legendary
Smile Mugs + Pinochio+ spot + Devils
Epic
Lizard + Ghost + Snail Eyes + Beards + scream hands + don’t do it + masking it
Rare
Diamonds Hands + Shades + handsome Devil + angel +Devil angel +Masking + Tears + Cowboy + all mustaches
Common
All others
Deductible
Nil
Claims Fee
Claims management and investigation fee will range from 2.5% for processing the claim such as if the the claim is meeting th terms and conditions. However, investigation and claim management migt reach up to 20% of the limit depending on the complexity of the claim.
Claim Payment
All approved claims are paid after 2 epochs.
Conditions
All wallets need to complete the regisration form foundin Pains website.
Eligibility for Coverage: Insured wallets must contain the registered Growing Pain NFT to maintain coverage. Wallets acquiring retroactive cover must additionally hold a Para Pain NFT TBA.
Exclusion of Compromised Wallets: Wallets involved in fraudulent activities, such as containing stolen assets or being linked to rug pulls or scams, are not eligible for insurance. Additionally, wallets with risk scores below the threshold set by Xerberus or Crowed Trends may be excluded, subject to the discretion of the Underwriter assigned to the policyholder.Policy
Extensions and Renewals: Discussions regarding policy extensions and renewals are ongoing and details will be provided as they become finalized.
Policy Activation: Policyholders are required to register to activate coverage. This can be done through the Pain’s website or Discord.
Wallet Requirements: The wallet to be insured must contain native cardano assets that are more than ADA 1000 in total value.
Social Media Verification: must meet Crowed Trends(c) and Xuberus(tm) minimum risk rating threshold.
Claim Process: Claimants must complete the necessary forms to process claims. Forms are available on the Pains' website (to be announced) or via Discord ticket forms (currently active).
Dispute Resolution: In case of a dispute, three key stakeholders will each have one vote: the underwriter, who aims to protect the treasury and attract more policyholders; the policyholder/shareholder, seeking adequate coverage from the Mutual treasury; and the claims manager, who earns by conducting investigations of both approved and declined claims. If the claimant is unsatisfied with the outcome, the broader community of policyholders/shareholders will cast their vote, and their decision will be final.
Registration form
https://form.jotform.com/240972863934468
Claims form
https://form.jotform.com/240984779797484
Exclusions
Note: all exclusions are not final and is under the underwriters discrition, you may report the claim and the underwriter can waive the exclusoin. purdon of proof that the loss was unforseen or sudden is on the claiment.
Rugpulls are excluded – However losses related to wallet drains are included. AKA Hard rug pulls, which occur when a project's founder uses coding to maliciously use the project to defraud investors. the loss occurred is much higher than traditional rugpulls.
Losses that are not considered a crime – However negligence or gross negligence may be covered. However, claim approval is at the joint discretion of the Claims Manager and Underwriter.
Losses that cannot be substantiated with a transaction (Tx) number are not covered.
Losses incurred to a non-registered wallets.
Losses incurred via social media accounts that have not been registered.
Losses occurring to unverified Pains holders (Pains KYC process)
Accounts compramized via unregisted SM accounts during registrtation will be excluded.
Assets under management, including but not limited to escrow services, that do not belong to the policyholder, are excluded.
Wallets without the registered PainsNFT
Assets other than Cardano blockchains are not covered; coverage for future blockchains may be considered later.
Approved assets only – list of approved assets are under development – during the pilot the claims manager and underwriter will have final say on the claim amount.
Losses occurring with centralized incorporated cryptocurrency exchanges, Binance / Coinbase / etc – these platforms typically carry their own insurance.
Web2 fiat losses are not covered (bank transaction). The Policy will only cover cardano assets.
Fines, taxes, and regulatory penalties are not covered.
excludes all losses arising out of war and cyber operations that are part of war. Cyber operations deployed by nation states outside of war may or may not be excluded depending on the specific facts
Losses stemming from a poor minting experience are excluded, coverage for mints may be considered later for Project managers.
Damage to electronic equipment, devices, or parts.
Additional points
More exclusions may be added as further data is collected. Policyholders are encouraged to regularly review the policy for updates. While every clause is open for discussion, the ultimate decision rests with the Pains' team.
Losses due to natural catastrophes including earthquakes, cyclones, tornadoes, and other disasters, are currently not covered. A parametric- product is under development.
Definitions
Insurance
Insured: The individual or entity holding the Pain NFT (Non-Fungible Token) and seeking insurance coverage for risks associated with participating in the Cardano ecosystem, specifically related to the "Growing Pains" NFT collection and Parapains collection as an add on.
Cover: The insurance coverage provided to the holder of the Pain NFT, protecting against all risks associated with trading within the Cardano ecosystem, subject to certain exclusions.
Inception: The start date of the insurance coverage, which occurs at the time of purchase of any Pain NFT within the "Growing Pains" collection.
Expiry: The end date of the insurance coverage, which occurs 3 months from the purchase date of any Pain NFT.
Period Extension: under review.
Limit/Cover: The maximum coverage provided by the insurance policy detailed in the table of limits. It worth mentioning that the cost of investigation and processing cost is part of the limit.
Share of loss: The percentile shares of the loss that will be compensated by the Slowing Pains fund depending on the rarity pains being held.
Limits per Rarity: The specific coverage limits associated with different rarities of Pain NFTs, as outlined in a separate table provided by the insurance policy.
Deductible: The amount that the insured must bear themselves before the insurance coverage applies. In this case, an option under review is the deductible to be set at 1 Pain NFT per claim request, which also includes the cost of investigation. If a claim is rejected, the insured permanently loses the NFT used as the deductible.
Rate: NFT royalties set at 20% or up to 50%, which are deducted from the sale of the NFTs of Pains. In other words, the fewer claims paid means the less the Policyholders will pay during a sale during the next quarter and renewal becomes cheaper.
Retroactive: the ability to report claims prior the inception date. In this policy the option to back date is 3 months prior the inception.
Retroactive Limit: The maximum coverage limit for retroactive coverage, which is the same as the base coverage limit but with reduced limits as outlined in the table in the slip.
An aggregate is a limit in an insurance policy stipulating the most it will pay for all covered losses sustained during a specified period, in our case a year.
Waiting Period is the time it takes to pay the claim, this might change depending on the type of claim report. In some cases, the assets will be monitored for longer until an exchange is reached or until the receiving wallet relates to a known scammer. This is a part of the claim approval process.
Definiens
Risks/crypto
Impersonators are individuals or entities that pretend to be someone else, often with malicious intent, to deceive others into providing sensitive information or engaging in fraudulent activities.
Scam websites are fraudulent websites created to deceive visitors into providing personal or financial information, purchasing counterfeit goods, or engaging in other fraudulent activities.
Cyber bullying involves the use of digital communication platforms, such as social media, messaging apps, or online forums, to harass, intimidate, or threaten individuals or groups. Cover in respect to this policy will include social media outreach to othe projects to stop the current harrasment and reporting the subjects. In addtion to the main lore of Growing Pains which is to the eco system for mental health awarness and support.
Extortion is the act of coercing or threatening individuals or organizations to obtain money, property, or services through intimidation, blackmail, or other means of manipulation. Cover will include cost of recovery, equall cover to NFT recovery. NFT (Non-Fungible Token) recovery refers to the process of recovering stolen, lost, or compromised NFTs through various means, such as legal actions, forensic investigations, or technological solutions.
Identity theft occurs when an individual's personal social media account(s) are stolen and used by someone else for fraudulent purposes, such as opening accounts, making purchases, or committing other crimes. In Pains Name!
Wallet drains refer to unauthorized or fraudulent transfers of cryptocurrency assets from the insured's digital wallet to other addresses controlled by malicious actors, with the uses of smart contract functionality. This occurs when an individual is tricked into signing a transaction that transfers all assets from one wallet to another
Discord hack refers to security breaches or unauthorized access to the insured's Discord account, a popular communication platform used by cryptocurrency communities and projects. E.g. discord attacked during mint and the policy holder sends ADA, the loss here is covered.
Traditional Rugpulls: A rug pull is a type of exit scam that involves a team raising money from investors and the public by selling a token only to quietly shut down the project or suddenly disappear, stealing the raised funds and leaving “investors” (i.e., their victims) with worthless tokens
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