Insurance

Byzantine Prime offers optional insurance coverage on deposited capital. This is an additional layer of protection on top of the structural safeguards already built into the protocol - overcollateralisation, smart contract audits, and real-time monitoring.

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What does the insurance cover?

The insurance policy covers losses arising from technical and operational failures, including:

• Smart contract exploits or vulnerabilities - bugs or coding errors in the protocol’s code that cause a loss of funds
• Hacks, cyber-attacks, or malicious external actions against the protocol
• Internal or external fraud
• IT fraud or fund-transfer related fraud

This is the primary residual risk in an overcollateralised lending product: not that borrowers default (that is handled by the collateral and liquidation mechanism), but that the code governing the protocol itself contains an unforeseen vulnerability, or that the infrastructure around it is compromised.

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Who provides the insurance?

Byzantine Prime’s insurance is provided by AON, one of the world’s largest insurance and risk management companies. Traditional insurers apply rigorous underwriting before extending coverage to digital asset protocols - verifying audit depth, operating history, and risk controls before agreeing to terms.

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What is not covered?

The insurance does not cover:

• Market-wide liquidity crises - systemic events affecting all markets simultaneously
• Custody risk from your own wallet or keys being compromised
• Market risk or general price movements of any asset

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How do I access insured products?

Insured products are available directly from your dashboard. When selecting a product to deposit into, look for the indicator next to the product name. Deposits into these products are automatically covered by the insurance policy - there is no separate sign-up or claims registration required on your part. The premium is deducted as part of the product’s fee structure and is already reflected in the displayed APY.

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Insured vs uninsured products

Both product types use identical underlying lending strategies and are secured by the same overcollateralisation mechanism. The only difference is the insurance layer. The yield difference between insured and uninsured variants reflects the cost of the premium. Which to choose depends on whether your compliance or risk-management framework requires a formal insurance policy - the underlying lending strategy is identical in both cases.