NFT RUG COVER
Making rug pulls no longer an issue in the in the whole NFT space.
NFT Rug Cover will however only primarily be offered to Solana based projects until further establishment of the venture and subsequent hirings. This cover will be offered through a NFT mint, in which the minted NFT will act as the cover policy.
We aim to have this service beta tested by September 2022. With a view to integrate its launch immediately after with cover policies in place by Autumn at the latest.
What Will This Cover Do?
Our cover will provide a limited cover (Meaning we will cover losses to a set amount) which will be assigned to your identity and your wallet and the activities that contain within that wallet. The cover lasts for a period of 1 year from your registration date. In order for your cover to be activated it would need to be registered with us after minting or secondary purchase, if you do not register your policy it will not be valid for any claim.
Registering Your Cover
Every holder would need to submit a form of identification and proof of address along with a KYC'D wallet address at one of the main exchanges (such as Coinbase) to our encrypted software. We ask this so we can monitor for fraudulent activity and trend analysis of claims. Without registering on our client database your claim would not be valid.
We will never ask for any seed phrase or vital information regarding access to your wallet.
Registration of the NFT which will require the holder to transfer their cover based NFT to our security deposit vault where every active cover will remain unless the owner requests to cancel their cover to sell on the secondary market. (Cancelling to sell on secondary covered under ''Secondary Heading")
Once your Cover has lapsed (Meaning your cover period has ended) or you have depleted your allocated limited cover you will be required to either renew your cover for the cost of the initial mint price or cease the ownership of your NFT held within the security deposit box.
For a cover to remain in place the holder would need to register the cover 14 days prior to any mint claim/s (failure to do so could void that claim).
How Many Active Covers Can I Have?
Our Standard minting cover will be allocated currently at 3 Solana per each wallet held, with the same identity verified holder being able to hold up to a maximum of 3 cover policies allocated to its own wallet. No single wallet can have multiple cover options active at any one time.
This will provide the following cover:
Minting cover for multiple projects that are launching their project through the minting process or auction setting. Each cover will remain active for that specified mint until the project/s have verified their listing on to secondary marketplace.
NOTE: The cover amount may increase or decrease as our risk analysis adapts and profitability increases. Each holder will be notified in advance of their allocation through their client dashboard.
Managing The Risk
To ensure our risk of losses are minimised, we will be utilising multiple data and verification processes for upcoming projects. Conducting not only research on the individuals but also the proof of concepts from a business perspective. We will also utilise the facilities of multiple high value projects within the Solana ecosystem to assist us with our overall imaging of a project to determine the risk level to our holders and ourselves.
For maximum cover payout to be issued of 3 SOL, holders would need to mint from the extensive list of vetted projects and assigned risk level that we collate through the vetting service and through partnerships with other projects.
Viability of the project.
When looking at the long term viability of the project we looked at how we can ensure the project is not victim itself to corruption from fraudulent mints, scammers, and opportunists.
We have included a number of counter measures to counteract each threat. Some of which we can cover within this whitepaper, some we can not due to security.
Un-Approved/ Non Classed Risk Projects
Individuals can raise ticket with us through their dashboard providing its within a maximum of 14 days prior to the un approved projects mint date.
We will acknowledge this submission within 72 hours, Where we will then look to conduct a deep dive into that project, to uncover the projects viability and risk level.
Should we find the level acceptable we will acknowledge our findings with the ticket raiser along with, which cover (if any) is in place and at what level. We could then look to update the projects to the rest of the holders as either approved or unapproved for future use.
Both SOSMC holders and holders of a NFT Rug Cover have access to some hugely beneficial services to help them build a strong portfolio of collectables that would not normally be available to them without some serious financial outlay.
Each holder will have access to dynamically updated risk reports that they can utilise for not only covered mints but also access to some of Solana best upcoming ideas within the space. We will be acting as agents between projects and potential holders providing both parties with credibility and risk management.
Each policy holder will have access to our user client dashboard software which is used by leading publicly traded insurance companies throughout the world. The software we are will be provided under contract by one of the leading CRM providers in the world.
Renewing The Cover
To renew the cover, the current holder would renew with us directly for the initial mint price of 2 SOL within 14 days of the cover coming to an end.
Should you wish to renew the cover, the NFT based cover will remain locked away in our SDB and payment would be made to ourselves through either Solana or FIAT currencies as instructed in the renewal terms.
If you wish to not renew, we would with hold the NFT based cover and resell the cover on secondary.
Flow Chart Of Ownership And Cover
To gain a better understanding of cover ownership please see below.