Bad things happen - that’s something we can’t avoid. A customer can change his or her mind regarding the deal or damage an asset while using it… Building a decentralized platform we, nevertheless, wish to give users an opportunity to cover their risks.
There are two types of insurance on WONO: deal cancellation insurance and asset or third party liability insurance. Let me give a short review of both.
Deal insurance is one of our killing features. It lets any WONO user become a guarantor of any deal, including his or her own one. What is a guarantor? It’s a user who makes a stake in tokens for the successful termination of the deal. If this happens, guarantor gets the stake back, plus a reward from insurance part of the platform fee. If not, he or she loses the stake - it transforms into compensation for the affected party. Which is determined during the arbitrage by other platform users. This process is described in details in our whitepaper.
Critics say that non-professional arbitrators can be cheated. Well, they definitely can. And professional arbitrators, too. But we’re sure that WONO is well-protected from any kinds of frauds since all users pass through the know-your-customer procedure and have their personal reputation index. You can cheat arbitrators once or twice but finally, your rating will fall down and no one will want to make deals with you.
While dealing insurance, we can organize independently, for asset and third party liability insurance we need some strong partners. There’s already a number of companies who deal with blockchain insurance. Now we’re discussing terms of partnership with them and can’t yet disclose the names. But we hope we’ll have such opportunity pretty soon.
Good news is that we can offer insurance policies with a significant discount of 20-25% compared to the market. Why so? Because, first, we reduce agency commission, working directly with the insurer. Second, we’ve got our own asset and user scoring and rating systems, so we stand-in for underwriting job of the insurance company. WONO API will help to transfer the collected data to corporate CRM of the insurer.
And of course, insurance will be optional. A vendor itself can demand to pay for his asset insuring, but there will always be another one who won’t. Freedom of choice - that’s what makes WONO a truly democratic platform.