Here is the second part of the video interview with Timofey Volkov on the independent Russian portal Aurora Blockchain Capital. The biting and stinging questions of impartial presenters did not remain without comment by the CEO of CRYPTOINS.
Extract from your White Paper. If you letting me quote… So, exceptions to insurance claims that do not fall under the insurance policy: there is a large list which includes radiation contamination, martial law, and much more. Another interesting point seemed to me interesting — any careless actions of an insured. It seems to us that everything can fall under this item. Explain what you mean by these words?
Insofar as we want to cut off possible claims not related to the insured risk covered by CRYPTOINS. Owners of crypto assets who have lost their keys, passwords and other significant security elements will not be able to get insurance in our service. Our case is a complete collapse and cessation of the operations of the crypto exchange, and therefore our insurance policy covers only this kind of risks. In this light, even partial loss of funds from a client’s accounts if the exchange continues to function and communicate with its customers is not our case.
Let’s imagine the following situation I appeal to you to insure my deposit, and then there are problems with the withdrawal of funds from crypto exchanges. Accordingly, I cannot do this for a long time, and the platform management continues to communicate with me within the framework of its authority and promise payments in the future. But I understand that most likely it will collapse and I will be left with nothing. Tell me, in that case, will I receive any compensation from CRYPTOINS? Should I wait?
As I have already said, we must wait for a month (30 calendar days) from the moment problems arise with the withdrawal of funds from the exchange accounts. If the owners of the exchange continue to communicate with their customers and undertake to return the money within a certain time, then this is not an insurance case.
Hmm .. I tell you as a client, this sucks. The crypto exchanges are not regulated at all. And by and large, their functioning can be compared with the behaviour of adolescents. And CRYPTOINS is a serious and business guys. And as I see you try by this condition (waiting 30 days) to evade responsibility in the future. After all, in my memory, the exchanges have never closed immediately, “declaring itself bankrupt”, and so on.
Focusing on my experience, I can say with confidence there have been all sorts of cases: the exchanges could close as soon as possible, and take time remaining “afloat”.
Perhaps you should reconsider the CRYPTOINS policy. As your potential client, I am not ready to come to terms with a number of insurance claims conditions that you described in CRYPTOINS White Paper.
You are definitely right this situation can occur. And your position is unconditional reasonable enough. This question will remain open and perhaps we will add insurance claims in the future. I admit the thought that it makes sense to think about increasing the waiting period up to three months as you advised earlier. But in this case, we can not exclude negative feedback from customers who will be forced to expect payment within not one month, but three if the exchange closed quickly.
I think the waiting period should be made dependent on the cost of the policy, what do you think?
Let us be clear: the minimum basic insurance period in CRYPTOINS is 90 days. A client has the opportunity to independently choose the insurance period with a limit of up to 365 days. At the end of the year, the insurance is extended. Depending on the insurance period, the amount of insurance compensation varies. But you propose to make the cost of insurance depends on the waiting period — this is a very controversial issue. The issue requiring additional risk analysis and research. As an option, this proposal sounds reasonable and from the point of view of implementation, we have the opportunity to implement it further.
Tell us about the discounts. I read in CRYPTOINS White Paper you provide for discounts on insurance. Is it so? And how are they formed?
So, the discount depends on the security level of the crypto exchange and CRYPTOINS regulate it with tariff levels (level of insurance rate).
And then another question: how do you assess the security level of the exchanges?
We developed a scoring model in partnership with Group IB, a well-known company with a long history in cybersecurity. They are one of the leaders in their field in Eastern Europe. Based on this scoring model, we deemed 24 exchanges and wallets eligible to be insured. Obviously, they are fairly large exchanges with extensive customer bases and high traded values. As for the other exchanges with an unclear level of risk, we have developed a special approach to form an insurance fund at the expense of the exchange, which functions as a franchise.
Good. Coming back to the question of discounts, can you announce the size of the discounts? At least about?
In general, taking into account all factors and conditions, the discount cannot be more than 30% of the amount of the insurance premium (in other words, the base rate). The base rate is 2.5% per quarter of the sum insured.
Do I understand correctly that if you made Bitcoin a priority coin, then you probably calculated your income in fiat currency? Is there any minimum cost of Bitcoin before reaching which you will be forced to get rid of this cryptocurrency?
Certainly CRYPTOINS has its certain cost price, but I will not be able to voice it.
Let’s imagine the following situation: you have successfully launched your business and the first clients have appeared. And then suddenly Bitcoin fell to $30.
In any case, we will be obliged to fulfill our obligations to our clients!
The full version of the interview is available here.
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Your CRYPTOINSteam.