The purpose of this document is to illustrate the terms and conditions of the Bridge Insurance offered by Web3Shield.


Currently, Web3Shield offers Bridge insurance that is intended to reimburse for the loss of tokens in transit from one chain to another.

Coverage / Covered Risks

When you use a crypto bridge to do transactions, your funds are exposed to a variety of risks. Web3Shield Insurance provides protection against the following claimable risk events:

  • Loss of tokens in transit due to bridge malfunction, hack or vulnerability exploits of the covered Bridge.

  • Loss of tokens in transit due to error in slippage reported by bridge and/or DEX for tokens received at bridge or DEX on destination chain.

Claims Process

After a loss event occurs, you must file a claim within the seven (7) days from the date of the loss event, any claim filed after this period shall not be covered.

Claim assessors (actuary DAO) will review, discuss, and vote to approve claims where proof of loss shows that the Cover Purchaser has suffered a loss of funds.

The details and results of the investigation, including the cover payout decision, will be produced in a report. If the claim is approved, funds will be made available to be claimed by the Cover Purchase Address.

For a detailed description of the Claims Assessment process see Claims Assessment section.

Proof of loss

When you insure a transaction with our Crypto Bridge Insurance and suffer a loss of funds, you can file a claim and claim assessors (actuary DAO) will review the claim submission to determine whether the claim is valid. To proceed with the claim request, proof of loss is required.

Proof of loss shall include, but is not limited to:

  1. the Cover Purchase Address

  2. the Source Chain Transaction ID/hash

  3. the Policy ID

  4. References to any relevant on-chain transactions

  5. Official announcements / alerts / news of the occurrence of a hack

  6. Any other evidence as deemed necessary

To proceed with the claim request, the claimant will be required to prove ownership of the affected address, allowing claim assessors to review the claim.

Some of the factors that claim assessors consider to determine whether to accept or reject a claim are (but not limited to):

  1. If funds were deposited when the loss event occurred

  2. If the claim was filed within the established period after the loss event occurred

  3. If the Cover Purchaser suffered a loss of funds, and if so, the amount of funds that were lost

  4. If the cover was active when the loss event occurred


  • Policy purchased after the occurrence of exploitative events that have been made public will not be considered as eligible to make a claim.

  • Any assets of widely blacklisted wallets and marked by illegality

  • Any non-fungible token (NFTs)

  • Any loss due to carelessness, misunderstanding, improper usage, omission or misuse by claimant

  • There is clear evidence to suggest that the Cover Purchaser is being paid out by another insurance protocol/company (or any type of insurance provider) and the amount being paid out is, in aggregate, an amount in excess of the amount lost by the Cover Purchaser

  • Loss due to movements in market price of asset

  • Loss due to rug pulls

  • Loss due to vulnerabilities, bugs or other issues made public prior to transaction execution

  • Any event of token price depeg

  • Loss due to changes or failures in safety or liveness properties of underlying blockchain

  • Loss due to administrative, gas, transaction fees or expenses incurred in executing the transaction

  • Loss due to collateral damage from claimable risk event:

    • Any consecutive losses due to the occurrence of the claimable risk event

    • Losses pertaining to other currencies and resulting consequences

    • Loss due to any additional or prior token approvals granted to a bridge exclusive of the approval granted for the bridging transaction

  • The Loss Event took place outside of the Cover Period


The cover purchaser may be compensated for his/her tokens lost during the covered bridge transaction where:

  • The loss is related to the wallet address used to purchase the cover

  • The loss occurred during the cover period

  • A claim is submitted during the cover period or within 7 days after the cover expires

  • Any recovery received by the Insured as compensation for his/her losses shall be excluded from the claim payments

  • Claims without sufficient proof of loss and ownership are automatically deemed invalid and rejected

  • Exploitative events on bridges will be announced on the respective discord channels (or any other social channels) and Web3Shield will stop issuing insurance policies for transactions on that bridge, any loss due to vulnerabilities, bugs or other issues made public prior to transaction execution are not covered


Web3Shield’s obligation to reimburse the Cover Purchaser up to the value of any cover payout for any other compensation or loss recovery shall automatically terminate when one of the events below occurs:

  • the occurrence of a claimable risk event;

  • the termination of the covered bridge transaction.

In the event the cover is canceled due to the bridge transaction having been canceled and the cover purchaser’s tokens remain unaffected, any contribution paid for the insurance (policy premium) by the cover purchaser shall not be refunded.

Misrepresentation / Fraud

A claim will be refused if it is made in any of these cases:

  • if any Claim made is forged, fraudulent or exaggerated

  • if any false declaration or statement is made

  • If any claim is a duplicated claim

  • if the claim is being made from a wallet address different from the cover purchase address

  • If the ownership of the cover purchase address can’t be proved or the cover purchaser has lost access to the cover purchase address


  • Actuary DAO/Claim Assessors: A decentralized group of actuary & underwriter professionals who assess a claim and its proof of loss to determine whether the claim is valid and therefore payable.

  • Claim: A formal request submitted by a cover purchaser to receive compensation for losses suffered due to a claimable loss event. This request is subsequently evaluated by the Actuary DAO.

  • Claim Amount: The amount requested as compensation following a claimable risk event.

  • Claimable Risk Event / Loss Event: A specific incident resulting in the loss of assets during their transit.

  • Company Risk and Cover Pool: A dedicated fund set aside to compensate successful claims.

  • Cover: Coverage offered by Web3Shield in the event of a claimable risk event subject to the terms and conditions.

  • Cover Payout: The compensation dispensed for a verified and approved claim to a cover purchaser.

  • Cover Period: The specified duration during which the purchased insurance cover remains active and valid.

  • Crypto Bridge Insurance: An insurance solution by Web3Shield, insuring assets against predefined risks within set terms and conditions.

  • Cover Purchaser : The individual or entity identified as the authorized owner of the cover purchase address.

  • Cover Purchase Address : The wallet address used for the transaction involved in paying the policy premium for Crypto Bridge Insurance.

  • Policy ID: A distinct identifier allocated to each insurance policy issued.

  • Policy Premium: The contribution paid for the insurance coverage.

  • Proof of Loss: Essential documentation or information required when lodging a claim to confirm the legitimacy of the claimed loss event.

  • Rug pulls: Deceptive tactics where a developer or project team entices investors/users, only to abscond with their assets unexpectedly.

  • Slippage: The difference between the expected price of a transaction and the executed price.

  • Transaction hash: A unique alphanumeric identifier representing a specific on-chain transaction.

  • Transit: A phase during which assets are considered in movement, starting from the initiation of a transaction on the source blockchain until its finalisation on the destination blockchain.


As a decentralized protocol, Web3Shield operates outside the purview of traditional licensing and regulatory frameworks. Nonetheless, in the spirit of transparency and commitment to our stakeholders, Web3Shield will periodically disclose its audits and financial reports, or as necessitated by specific circumstances.

This cover is not a contract of insurance. It offers discretionary protection with the Claim Assessors / Actuary DAO having full and final discretion on claim and cover payout approval.

Completion of any cover payout is determined by sufficiency of assets in the Company’s Risk & Cover Pool.

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