The Solution: Community Owned Coverage

Community Owned Theft Coverage

Fairside introduces digital asset protection through its community-owned theft coverage model. Unlike traditional insurance models, which often operate with opaque practices and profit-driven motives, Fairside empowers its users to collectively own and govern the coverage fund. By contributing to the fund, members become part of a global network that pools resources to protect against a wide range of thefts. This approach distributes risk across the community, fostering a cooperative environment where every member has a vested interest in maintaining the fund's stability and growth.

Shared Responsibility and Mutual Protection: When members join Fairside, they are not just purchasing coverage; they are entering into a mutual agreement with other community members. This shared responsibility encourages active participation and engagement, as each member's contribution directly impacts the fund's capacity to cover potential claims. The community model aligns everyone's interests toward a common goal—creating a safer and more resilient digital economy.

Dynamic and Adaptable Fund: The Fairside Fund is designed to be both dynamic and responsive to changes in membership and market conditions. As new members contribute, the fund grows, increasing its ability to cover claims. Conversely, the fund adjusts in size with payouts and withdrawals, maintaining a balance that ensures long-term sustainability. This adaptability is enhanced through traditional risk mitigation strategies borrowed from the insurance industry, such as actuarial modeling and dynamic incentives (e.g., fluctuating APYs). These mechanisms encourage ongoing contributions and provide stability, even in volatile markets.

Comprehensive Coverage and Efficient Claims Process

Fairside offers comprehensive theft coverage that addresses over 30 types of digital threats. This includes phishing attacks, social engineering schemes, wallet drains, malware, and more. Coverage is not limited to just cryptocurrencies; it extends to all digital assets within a user’s wallet, including NFTs and RWAs, ensuring a broad safety net that protects against both common and sophisticated threats.

Simple and Transparent Claims Process: When a covered loss occurs, members can file a claim through Fairside's user-friendly platform. The process is straightforward and transparent, designed to minimize friction and maximize efficiency. Claims are reviewed by a specialized Security Council composed of digital asset experts who use a combination of manual checks and automated systems to ensure fairness and accuracy. This council is responsible for validating claims, reducing the potential for fraud, and ensuring that legitimate claims are processed swiftly.

Clear Costs and Personal Responsibility: To activate coverage, members pay a one-time fee of 1.95% of their desired coverage amount. For example, to cover $3,000 worth of crypto, the membership fee would be $58.50. If a theft occurs, members can file a claim for a nominal fee (10% of the membership cost), and if approved, they receive a payout minus a 10% Personal Responsibility Amount. This structure ensures that members are protected while also maintaining a fair and balanced approach to risk-sharing within the community.