Slashing Insurance

What is it?
What is it?
Relm Insurance Ltd. has developed the industry’s first institutional-grade Slashing Insurance policy. Our data-driven risk transfer framework is designed to protect
institutional staking providers, asset managers, foundations, and other investors against the financial losses and damages resulting from slashing events.
Why do you need Slashing insurance?
Risk Mitigation
Investor Confidence
Regulatory Compliance

Who would benefit?

Slashing insurance primarily benefits participants in blockchain networks that utilize slashing mechanisms.

  • Validators
  • Staking Providers
  • Blockchain Projects
  • Investors and Token Holders
  • Network Governance Participants
  • Regulators and Compliance Authorities
What is Slashing?
In the context of cryptocurrency, "slashing" refers to a mechanism designed to discourage dishonest or malicious behavior by participants in a blockchain network, particularly in proof-of-stake (PoS) or delegated proof-of-stake (DPoS) consensus algorithms. Slashing acts as a penalty for validators or stakers who violate the rules of the network, with the aim of maintaining the security and integrity of the blockchain.
Who is covered?
In the context of blockchain networks that utilize slashing mechanisms, the coverage generally extends to the following: Validators, Staking Providers and Blockchain Projects.

Slashing Insurance Mitigates Loss

The financial damages of a slashing event can be sizable – even catastrophic. Mitigating the costs of potential slashing penalties or network fines is the primary motivator for acquiring a Slashing Insurance policy.

Other benefits include:

Addressing investor concerns and demonstrating a commitment to risk management

• Satisfying contractual requirements that may mandate the purchase of such insurance

• Covering business interruption costs, such as missed returns, in the event of a slashing incident

• Protecting a business's balance sheet from the costs of defending against litigation related to a slashing event.