InsurAceMicro-cap
Moderate risk — proven payout track record, but reserves are too thin for a truly catastrophic event
Top Risks
1
Correlated depeg events (multiple stablecoins or LSTs depegging simultaneously) can trigger claims exceeding InsurAce's $30M underwriting capital, leading to pro-rata payouts below full coverage
2
Capital provider withdrawals during stress events create a death spiral: claims deplete pools → underwriters panic and exit → remaining claims become unpayable
3
Depeg insurance pricing is inherently difficult; if premiums are set too low relative to true depeg risk, InsurAce operates at a structural loss and cannot sustain payouts
Risk Breakdown
Frequently Asked Questions
Is InsurAce safe to use?
InsurAce receives a B- risk grade (33/100) from Hindenrank, where lower scores indicate lower risk. Moderate risk — proven payout track record, but reserves are too thin for a truly catastrophic event A crypto insurance protocol where you can buy coverage against hacks and stablecoin crashes, or provide capital to earn premiums as an underwriter. It proved the model works by paying out $11.6M in claims after the Terra UST collapse. Its B- grade reflects the fundamental problem that $30M in reserves may not cover a major correlated event.
What are the main risks of using InsurAce?
The key risks identified for InsurAce are: (1) If two or more stablecoins crash at the same time, the $30M insurance pool cannot pay everyone in full. Policyholders would get cents on the dollar. (2) When big claims hit, capital providers can withdraw their money before losses are locked in, leaving the remaining pool even smaller for everyone else (3) Insurance premiums may be priced too low for the actual risk. If a major hack exceeds $40M in claims, the protocol simply runs out of money.
What is InsurAce's risk score breakdown?
InsurAce scores 33/100 across eight risk dimensions: Mechanism Novelty: 5/15, Interaction Severity: 8/20, Oracle Surface: 5/10, Documentation Gaps: 3/10, Track Record: 2/15, Scale Exposure: 0/10, Regulatory Risk: 2/10, Vitality Risk: 8/10. The highest risk area is Vitality Risk at 8/10.
How does InsurAce compare to other DeFi protocols?
Among 68 rated DeFi protocols on Hindenrank, InsurAce ranks #24 by safety (lowest risk score = safest). Its 33/100 risk score and B- grade place it in the middle tier of DeFi protocols.
Has InsurAce ever been hacked or exploited?
InsurAce scores 2/15 on the Track Record risk dimension, indicating some history of security incidents or exploits. Higher scores reflect more severe or frequent incidents. Review the full risk report for details.
Last scanned 2026-02-12