Claim Assessment

Amulet intends to use a hybrid claims process to simplify its procedure and ensure fairness for its users. This hybrid process will consist of a:

• Programmatic claim process for parametric cover products.

• Voting-based claim process for non-parametric cover products.

Vote-based Claims

For non-parameterized cover products such as smart contract risk or custodian risk where risk events or exploits are not yet easily verified, a voting-based claims process is required.

Claim Assessment Process

Step 1: Submit Claim

Upon being notified of a potential Claimable Risk Event, the Claim Committee shall investigate and verify the event for up to seven (7) days from such notification, after which the Claim Committee shall make an announcement through Amulet’s social media accounts and/or channels as set out on Amulet's website or app to confirm or disconfirm the occurrence of a Claimable Risk Event, or to extend the time to investigate and verify the event.

Claims must be submitted in respect of a Claimable Risk Event that occurred within the Cover Period with a deposit fee payment made to Amulet before the expiration of the earlier of:

• 14 days after Amulet’s public confirmation of the Claimable Risk Event; or

• 14 days after the Cover Period has expired,

failing which there shall be no Claim under the Cover.

The Claimant shall submit evidence for proof of loss within five (5) days from the day of claim submission, failing which the claim shall automatically be deemed invalid and rejected.

Learn more about how to submit claims.

Step 2: Review and Vote

After receiving the claimant's evidence for proof of loss, Amulet's Claim Committee (includes team members, community representatives, and third-party security experts) will investigate the claimable risk event, review the evidence, and vote on a payout decision:

Payout Decision	Details
Approved	Payout the full claim amount and refund the deposit fee in full. Proceed to step 4.
Partially Approved	Payout a revised amount and only refund 50% of the deposit fee. If the Claimant accepts the decision, proceed to step 4, otherwise proceed to step 3.
Rejected	No payout. Only refund 50% of the deposit fee. If the Claimant accepts the decision, proceed to step 4, otherwise proceed to step 3.

An investigation may take around 7 working days or more, depending on the complexity of the claimable risk event.

Step 3: Appeal

After the claim has been determined by the Claim Committee, the Claimant shall have seven (7) days to file an Appeal (if any) against the decision of the Claim Committee with new and different evidence for proof of loss, failing which the Appeal shall be rejected. The remaining 50% of the deposit fee will be charged for filing an Appeal. The Claim Committee shall have sole and absolute discretion to make a final and conclusive decision on the Appeal.

Step 4: Settlement

If the claim is approved or partially approved and is not rejected by the Claim Committee, a claim payout together with the corresponding deposit fee refund shall be made to the Claimant in accordance with the Claim Committee's decision.

Amulet shall not be responsible for any differences between the market value of the tokens used in making the claim payout at the time of such claim payout and the time the Claimant has received such claim payout.

Programmatic Claims

This approach is suitable for parameterized cover products, such as stablecoin de-peg cover. Its trigger criteria are clear and simple enough to be programmed and automatically executed when the necessary conditions are met (e.g. stablecoin falls a certain predefined amount below its peg). Users will be able to enjoy a much faster claims process and greatly reduced burden to supply proof of loss. At the same time, Amulet will be able focus more on protocol development and bringing industry-leading products to market.