Insurance coverage active
Falcon Finance's assessment for RD-F-089 — scored red on the v1.7.0 rubric. The evidence below is the curator's reasoning for this score.
Evidence summary #
On-chain Insurance Fund at 0x432CDcc4516B21302985b639Ef9a7853727A4e49 holds ~$10M (~0.62% of $1.618B TVL). No external protocol-level insurance (Nexus Mutual, Unslashed, Sherlock). Self-insurance only, structurally thin for off-chain custody risk.
Detail #
Profile §4 flag: '$10M insurance fund adequacy at $1.618B TVL (~0.6% coverage)'. Profile §11: 'economic-market-analyst must assess: (5) the $10M insurance fund adequacy at $1.618B TVL (~0.6% coverage)'. Insurance Fund documented at docs.falcon.finance/resources/insurance-fund.md; on-chain address 0x432CDcc4516B21302985b639Ef9a7853727A4e49. No Nexus Mutual, Unslashed Finance, or Sherlock cover program found for falcon-finance. Self-insurance of $10M against $1.618B off-chain custody risk (Fireblocks CVA, Ceffu MirrorX, Binance, Bybit) is 0.62% coverage — far below peer norms for synthetic stablecoins (Ethena maintains ~$46M+ reserve fund against comparable TVL). Red: no external insurance; self-insurance fund < 1% of TVL.
Sources #
- EtherscanFalcon Finance Insurance Fund — EtherscanInsurance Fund on-chain address 0x432CDcc4516B21302985b639Ef9a7853727A4e49retrieved 2026-05-12
- Falcon Finance — Guide to Transparency and SecurityFalcon Finance transparency and security guide — insurance fund descriptionretrieved 2026-05-12
Methodology #
Determine whether active coverage on Nexus Mutual, Unslashed, Sherlock, or equivalent is in force; record cover size in USD.
See the full factor methodology and distribution across all protocols →