SIX Network

Jun 22, 2021

4 min read

CertiKShield — Maximized Safeguard To Your Safety On Definix

A large percentage of losses in assets on digital currencies have been reported and billions of dollars are unretrievable caused by the malicious activity of hackers.

Regarding, the rapid blossoming of DeFi equally attracted hackers who saw it as a new market to carry out their malicious enterprise.

Therefore a pool of funds is grouped for the other interested party who pays for insurance coverage and can be drawn to be given guaranteed financial coverage if a specified unwanted incident happens in the future just like CertiKShield is providing for Definix users.

What Is CertiKShield?

Definition: A CertiKShield Pool is a flexible, decentralized pool of CTK that uses CertiK Chain’s on-chain governance system to reimburse lost, stolen, or inaccessible crypto assets of any blockchain network.

Not all DeFi platforms have access to the coverage of CertiKShield. Rules and Terms of CertiK foundation were set discretionary for community funds that have high security and trustworthiness. Only chosen platforms with a guarantee passing CertiK Audit and using CertiK Skynet service will be able to fund the CertiKShield.

CertiKShield Pools are intended to serve as discretionary community funds used to protect its members, who may be holding $KAVA, $BASE, $CAKE, and now $FINIX or any other crypto asset.

Pool Members may submit detailed Claim Proposals. With a decentralized model, voting is open allowing CTK Token holders to actively determine reasonable coverage scenarios, and fully flexible to create appropriate reimbursement dynamics.

How CertiKShield System Works?

Collateral Pool: The Collateral Pool is a decentralized and fully flexible pool of funds used to reimburse lost or stolen crypto assets. The Pool is created by members who contribute CTK as collateral.

Shield: The protection purchased on an asset. When Shields is purchased, funds to the same value in the Pool are reserved for potential claim reimbursements. The total amount of available Shields is identical to the total size of the Collateral Pool. For example, a Collateral Pool collateralized by 100CTK means 100CTK worth of Shields is available for purchase.

Claim Proposal: A Claim Proposal is a detailed submission of the incident in which tokens were lost or stolen. Claim Proposals can only be submitted by members who have active Shields — they cannot be submitted after Shields expire. Claim Proposals will be approved or rejected based on the voting results via decentralized consensus.

Service Fee: A Service Fee is a payment of digital assets made by members of the CertiKShield system. There are three types of fees, the Pool Sponsor Fee, the Shield Purchase Fee, and the Claim Submission Fee, described below. All fees are solely distributed to the participants who provide collateral to the CertiKShield system.

Shield Purchase Fee: A fee sent by a member to reserve a Shield. This Shield Purchase Fee is sent directly to the members who have staked CTK as collateral to the Pool. The purchase of a Shield can be paid directly in CTK, the native token of the Pool Sponsor, or by staking CTK.

Claim Submission Fee: A fee payable by a claiming member when submitting their Claim Proposal to request the reimbursement of their lost crypto. This fee is allocated across all voting participants.

Importance Of CertiKShield For Definix

Currently, there are a total of 21 CertikShield that passed the rules and terms, all of which are leading protocols such as PancakeSwap: the number one DeFi protocol from BSC, the famous Autofarm yield optimizer, or the new Wault Finance, and many more.

Definix is ​​being the 18th platform covered by CertikShield. This indicates the securities of the Definix platform and adding more confidence, simply as our security level meets the security of a world-class platform.

Generally users are not occupied with funding of the assets if it was hacked or breached on the DeFi. No compensation has been paid if there is no reserve or insurance.

But if Definix is ​​hacked or the assets are damaged, Definix will receive a security deposit from CertikShield to compensate investors. The amount of compensation depends on the company policy and the amount of insurance collected in the Collateral Pool.

Find more on how to buy CertiKShield For Your Own Safety

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