Morpho is concerned that users may 'fear risks and hesitate to use it', so they have created a 'protocol fund + third-party insurance' dual protection, maximizing the sense of security:
① Dual insurance covers all risks
The protocol's self-insurance fund: 10% of the protocol income is injected into this fund. In case of a 'small risk' (such as minor miscalculation), this fund will be used to cover it;
Third-party insurance cooperation: Collaborating with professional insurance protocols like Nexus Mutual, users can purchase 'large asset insurance', for example, by depositing 1 million USDT and paying a small premium. If they encounter smart contract vulnerabilities or hacker attacks, they can be compensated for over 90%, covering major risks.
② Users can choose the insurance level, flexible and transparent
Small assets: No need to buy additional insurance, the agreement fund can basically cover it;
Large assets: You can choose 'how much to insure, how long to insure', with premiums clearly priced (for example, insure 1 million USDT, for 1 year, premium 10,000 USDT), the insurance process can be completed with just a few clicks on the interface, no need to find a third party.
③ Automatic claims, no hassle
If the insurance conditions are triggered (for example, confirming a hacker attack), there is no need to manually submit materials - the system will automatically verify, and if conditions are met, compensation will be paid out, for example, mistakenly clearing USDT or compensating for contract vulnerabilities with MORPHO, arriving in as fast as 24 hours, so users won't have to 'wait anxiously for claims'.
With these two insurances, users do not need to 'give up because of a small problem', and can use Morpho's features with peace of mind.
