Insurance is available on the insured product variants (marked with ⚡ on the dashboard). These products carry a slightly lower Annual Percentage Yield (APY) than their uninsured equivalents, reflecting the cost of the insurance premium.
What does the insurance cover?
The insurance policy covers losses arising from smart contract failure - specifically, situations where a bug or exploit in the protocol’s code causes a loss of funds that could not be prevented by the existing technical safeguards. 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.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.What is not covered?
The insurance policy covers code-level failures. It does not cover:- Losses arising from collateral value collapse (these are addressed by the overcollateralisation and liquidation mechanism - see Overcollateralisation & liquidation)
- Custody risk from your own wallet being compromised
- Market risk or general price movements of any asset
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.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.| Insured | Uninsured | |
|---|---|---|
| APY | Slightly lower | Slightly higher |
| Overcollateralisation | ✅ | ✅ |
| Smart contract audits | ✅ | ✅ |
| Real-time monitoring | ✅ | ✅ |
| AON insurance policy | ✅ | ❌ |