Is OnRe Safe?
Risk Grade: C+ (40/100)
OnRe is rated as elevated risk — multiple novel mechanisms and notable interaction risks.
OnRe is a genuinely novel protocol bringing regulated reinsurance on-chain. The concept is sound but early-stage, with opaque off-chain risk and incentive-inflated yields. Suitable for sophisticated investors who understand insurance risk, not retail yield-seekers chasing APY.
OnRe is a Bermuda-licensed on-chain reinsurance company that lets you deposit crypto (currently sUSDe from Ethena) into pools that back real-world reinsurance contracts. You earn yield from insurance premiums, collateral returns, and token incentives. Think of it as investing in an insurance company, but on the blockchain.
TVL
$128M
Mechanisms
5
Interactions
4
Value Grade
C-
Key Risks for OnRe Users
Your money backs real insurance claims — if a major disaster hits, you could lose capital
The high 30-40% projected yields are partly from token incentives that may not last
The reinsurance portfolio is managed off-chain, so you can't see exactly what risks you're exposed to
Top Risk Factors
- •Reinsurance underwriting risk: if claims exceed premiums, LP capital in the pool suffers permanent loss
- •Opaque off-chain reinsurance portfolio valuation makes real-time risk assessment impossible for depositors
- •Token incentives inflate projected 30-40% yields; sustainable base yield may be much lower once ONRE emissions end
Risk Score Breakdown
OnRe's highest risk area is Regulatory Risk (8/10). Here's how each dimension contributes to the overall 40/100 score:
Read the Full OnRe Risk Report
This protocol has 2 collapse scenarios. 2 high-severity interaction risks identified. See the full mechanism classification, interaction matrix, and deep-dive recommendations.
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