InSure's cryptocurrency insurance operates on the following principles: I. Dynamic Pricing Model: This model is utilized to determine the appropriate market price through the forces of supply and demand. II. Capital Model: This ensures that the necessary capital is available to cover risks at all times. III. inSure DAO Voting Mechanism: This mechanism guarantees that every claim is processed in a permissionless and transparent way. For more information, please visit Eulerpool. **Note:** I included "For more information, please visit Eulerpool." to prompt users to check the website for more information, as no instruction was given to omit or edit such references.

The insurance sector is characterized by high leverage, making it crucial to accurately calculate the capital necessary to ensure the solvency of the risk pool. This calculation aims to achieve a notably high confidence level, such as 99.9%, in alignment with the latest EIOPA Solvency II framework. The Capital Model serves to determine the minimum capital requirements for the fund. This, in turn, is essential for: I. Defining the capital locked within the Capital Pool II. Assessing the staking power utilized during the Staking stage.

The surplus pool will accumulate whenever an insurance premium is paid, with 40% of the premium added to the surplus pool. An additional 10% will be reserved until the expiration of the contract. If no claim is made, this reserved amount will also be added to the surplus pool. Over time, the surplus pool will grow and will be used initially to cover insurance claims. If the surplus pool is insufficient to cover all claims, the capital pool will be utilized to cover the remaining amounts. Once the surplus pool reaches a substantial size, SURE holders will receive a percentage from their staked SURE, thereby incentivizing the growth of the inSure Staked Pool. InSure holders have the opportunity to stake on various decentralized exchanges (DEXs) and earn a percentage from each trade, in addition to benefiting from the insurance plans offered by inSure. During the initial phase, the focus will be on mitigating risks related to scams, asset devaluations, and stolen funds. Additionally, a broader range of less-correlated business opportunities will be introduced to provide higher returns to token holders, subject to community voting.

Under typical circumstances, all operations on inSure are executed via smart contracts. However, in practice, to consider user interests, enhance decentralization, and ensure more transparent processes, certain decisions will require community voting. To facilitate such decisions and manage exceptional situations, the platform will establish an inSure DAO organization. It is important to note that inSure DAO does not have custody of the fund pool, nor can it disburse funds to any specific individual. Committee members can be replaced through voting at any time. The inSure DAO will operate according to two core principles: sustainability (which ensures the interests of community members by maintaining the sustainability of the overall funding pool) and growth (fostering sustainable premium increases and expanding inSure DAO membership). The inSure DAO organization comprises individuals with specific expertise in insurance, co-governance, and blockchain development. Some of the powers vested in committee members include: I. Reaching consensus to implement specific code that cannot be automatically deployed; II. Disciplining bad actors within the inSure ecosystem (such as malicious claims, false claims, etc.) by burning SURE tokens; III. The authority to implement emergency suspensions under special circumstances.

InSure DeFi is advancing a hybrid on-chain/off-chain application by integrating Chainlink with Google Cloud AI, in addition to employing Chainlink’s Historical Price Data. This integration enables inSure to analyze on-chain data relevant to insurable events, such as stolen funds and scams, using Google AutoML, and subsequently communicate the results on-chain through Chainlink. The capability of Chainlink to connect with any external API facilitates GET calls to acquire data/results from the analysis and deliver them directly to smart contracts. InSure DeFi intends to utilize this distinct feature of Chainlink to exploit Google Cloud Platform’s machine learning services, including AutoML and Cloud Inference API, for processing publicly available information and blockchain data, with the decisions transmitted to smart contracts via Chainlink oracles to initiate an automated insurance claims fulfillment. Upon evaluating various oracle solutions, Chainlink was selected due to its proven security and adaptability in interfacing with any off-chain API. As the predominant oracle solution in the blockchain sector, Chainlink secures over $10 billion in on-chain value within DeFi, supporting leading projects such as Aave and Synthetix. Its network is supported by a robust group of secure node operators, managed by top blockchain DevOps, that are aggregated into decentralized oracle networks to provide reliable, precise, and tamper-proof data feeds. Furthermore, the historical price data utilized by inSure comprises volume-adjusted global prices, aggregated from all pertinent CEXs and DEXs, ensuring a high degree of accuracy. By merging its high-caliber data with the ability to access off-chain Big Data warehouses, inSure is positioned to develop enhanced and sophisticated insurance products that mitigate various risks associated with crypto portfolios.