On this page you will find a list of terms you will need to know to get started with helmet.insure.
Policy:Also called insurance policy; An insurance policy is the contract in which the policy buyer and the policy supplier agree on the rights and obligations
Denominated Asset: The amount of collateral that the insurance policy supplier needs to pledge in "Order Contract" to calculate the policy value.
Underlying Asset: The asset that the policy buyer wishes be protected at a price, relative to the denominated currency.
Policy Price: The executed price of the underlying/denominated assets.
Insurance Period :The period of price protecting, before which the policy holder has the option to claim the policy.
Policy Supplier: The seller of insurance policy.
Policy Holder: The buyer of insurance policy.
Cover Miss Out: A policy that the policy pice is double of current price on the underlying asset against the denominated asset.
Cover 50% Off :A policy that the policy pice is half of current price on the underlying asset against the denominated asset.
Cover Issue Prices :Generally refers to a cover off policy in which the policy price is the initial issue price of underlying asset.
Premium: The buyer paid to the seller for policy. At helmet.insure, premiums are payed in
DPR: Daily Percentage Rate, DPR is the percentage between premium and denominated asset, representing the Policy Supplier's return
Time value: Also called extrinsic value, is the value of the excess of the premium paid by the buyer of an insurance contract to purchase insurance over the intrinsic value of the insurance. Time value derives its value from the uncertainty of the value of the insurance until its expiration.
Out-of-the-value insurance: Insurance that has no intrinsic value, meaning that under this condition, holders might as well not claim the policy.
Real value insurance: Real value insurance, with intrinsic value, is likely to be profitable. Meaning that under this condition, holders might as well claim the policy.
LONG Token: it represents buyer's power, used for activate policy.
SHORT Token: it represents the seller's interest, used for redemption of asset or for settlement.
Four Elements: Denominated asset, underlying asset, policy price and insurance period. Contracts with the same four elements are treated as the same contract, using the same LONG Token and SHOR Token
Activate Policy: Means that Policy Holder claim the policy. Policy Holder swaps the insured assets with the Policy Supplier for denominated assets at set price.
Reprice: The Policy Supplier publishes a part of the policy which was not sold, the Policy Supplier can revoke this part of the orders and re-price the premium.