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

1.3. The Protocol may amend the Terms from time to time without prior notice to you. Notwithstanding anything in the Terms to the contrary, the Protocol will use commercially reasonable efforts to communicate any material amendments of the Terms through the Protocol’s social media accounts and/or channels as set out on the Platform but in any case, it is your responsibility to check for the latest version of the terms and conditions prior to purchasing the Cover or continuing with your use of the Cover. If you continue with the Cover after such amendments, you are deemed to have agreed to the amended terms and to be bound by them.

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 shall be payable under the following conditions:

The Reward Slashing Coverage will apply to the following on an epoch-by-epoch basis (~36 days):

  • Missed rewards from being offline - all deductions made on ETH2 Beacon Chain (including 0.1 ETH from whistleblower penalty)

  • Transactional rewards as part of 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. Under this clause, the loss incurred must be related to the wallet address used to purchase the cover, and the loss must have occurred during the cover period.

  • The claim must be submitted during the cover period or within 7 days after the cover expires. Validators must have, at all times, at least 2 different ETH2 clients running simultaneously. These clients may be Lighthouse, Prysm, Teku, Nimbus etc.

  • For every 1 ETH in cover purchased, UnoRe will insure up to 0.094 ETH in missed rewards per epoch, provided the criteria above are fulfilled. A deductible of 0.05 ETH will apply.

4. Exclusions. A claim will not be paid:

  • Loss of covered assets is due to private key security breaches, malware, hacks, smart contract exploits, and/or software vulnerabilities.

  • Claims will not be paid if 1000 or more validators are slashed within the cover period due to suspicions of colluding against the network.

  • 10% or more of total active validator nodes across all public staking pools go down due to widespread network downtime.

  • 10% or more of all validator nodes are not within the active validator set.

  • Missed rewards are related to MEV (MEV, or Maximal Extractable Value, is the ability for node validators to take advantage of viewing mempool transactions which can lead to frontrunning)

  • Missed rewards are due to technicalities right before, during, or right after the merge of the consensus and execution clients.

  • The insured provides false information, lies, or misleads with their claims.

  • Any losses due to validator keys of staking pools are stolen, tampered with, hacked, or exploited.

  • Nodes are misconfigured such as reward slashing caused by 1 key pair being shared by multiple validators.

  • There is convincing evidence that slashing was caused by ulterior motives on the validators’ part.

  • Claims occur within 72 hours of the policy start date.

  • Losses are caused by risks associated with Virtual Private Servers running ETH2 Clients.

  • Losses are caused due to government intervention or regulations hindering the operation of validator nodes.

5. Conditions

5.1 Challenge of Claim Decision

All claims are paid as per the policy terms and conditions with UnoRe Claim DAO having the final say on claims payable

5.2 Cover Termination

5.2.1 The Cover for a particular protocol shall terminate once the Cover Period ends as stated in the policy schedule, or

5.2.2 A particular pool will be eliminated from future coverage from the main policy under the given conditions:

a. When a claim has been registered under that particular pool, or

b. The Cover Period ends as stated in the policy schedule, or

5.2.3 Coverage for pools as agreed and listed in the policy coverage and those not exploited will continue post-elimination of affected pool

5.3. Disclaimer

5.3.1 Please note that while the Protocol aims to maintain sufficient capital to meet its obligations, the purchase of any coverage does not guarantee a full payout of all losses on the protected assets, in particular, if there are insufficient staked assets in the capital pool.

5.3.2 The Protocol is not licensed or regulated by any regulator in any jurisdiction.

5.3.3 This Cover is not a contract of insurance. The Cover offers discretionary protection that is provided to Cover Purchasers. The DAO has full and final discretion on whether or not a claim is approved for a successful payout.

5.4.4 The DAO reserves rights to rescind coverage at its sole discretion within a timeframe of 72 hours subsequent to the procurement of the policy.

6. Definitions:

6.1. Cover Period means the period for which the cover has been bought and is valid for

6.2. Material Loss means a loss that goes beyond the gas-related costs involved in operating the contract

6.3. Policy End date means the date till which the Master Policy is valid, post that date the policy expires.

6.4. Policy Start Date means the date from which the policy cover starts and covers that particular user, i.e. the date on which the policy was bought by that particular individual

6.5. Protocol means the UnoRe protocol.

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