Cover for capital that moves without you.

A credit default swap on smart contract failure, priced for autonomous capital. Premium accrues per second. Settlement runs on-chain the moment an invariant breaks.

$15.8bn
Lost to hacks to date
480+
Smart contract hack events
3%
Of DeFi TVL carries cover
68%
Broke a checkable invariant

Loss and event totals cover all recorded smart contract hacks (DefiLlama). Cover share and invariant share come from Markoff’s 280-incident priced dataset.

Open a cover position

Premium accrues at a rate derived from the protocol’s risk score and pool utilisation. The covered principal pays out when the position settles.

Pays
Accruing premium
Receives
Covered principal

Supply the pool

Supply capital once and earn the premium accruing across every position it backs. The yield tracks protocol risk.

Receives
Premium accrual
Carries
Settlement exposure

Protection has not scaled with the capital it protects.

About $320m of cover stands against $10bn of AMM TVL. Balancer v2 lost $128m to a maths error while holding eleven audits.

  • Payout verification is manual and slow.
  • Risk pricing models are opaque.
  • Supply-side capital is thin.
Cover outstanding against AMM TVL
AMM TVL$10bn
Covered $320m

3%of DeFi TVL carries cover

Three things have to be true at once.

Risk pricing
Quantified from 300+ EVM hack events and qualified with security firms. The premium rate is derived from protocol risk and pool utilisation.
Automatic settlement
A cover position settles the way a lending position liquidates: an on-chain condition breaks and the transaction follows. For example, the constant product K in an AMM pool must not fall during normal operation. When it does, the position is settled.
Shared cover pool
Suppliers provide liquidity once. Premium accrues to them across multiple uncorrelated pools.

Premium accrues. The position settles itself.

Cover buyer
Accrues premium into the vault while the position is open.
Cover pool
Suppliers provide the capital the vault holds against open positions.
Cover vault
The contract holding the capital. It reads the invariant and pays the covered principal when the position settles.
On-chain invariant
The condition stated before the position is opened, with an expert council fallback where it cannot resolve.
The invariant is stated before the position is opened, and read from the same on-chain state an exploit breaks. Describes intended behaviour.

Cover is offered where the risk is taken.

An opt-in line inside the wallet confirmation, priced on the transaction in front of you. Duration and covered share are set before you sign.

Retail
Cover at the point of signing
Institutional
Allocation protection
Wallets
Referral fees on opt-in cover
Protocols
Cover offered alongside supply

Wallet confirmation

NetworkEthereum
Interacting withUSDC
Network fee$0.24

Exploit cover

Smart contract failure, withdrawal locking, oracle manipulation

Premium

+$3.75

Duration
7–90 days
Covered share
25–100%
Illustration of the intended integration. Figures are indicative.

Pricing is derived from 280 recorded exploits.

Losses by yearUS$ millions
255
2020
2,254
2021
3,211
2022
1,532
2023
1,403
2024
2,354
2025

Complete calendar years. No downward trend in six.

Broke a stateable invariant191 of 280

A parametric trigger needs a condition that can be stated in advance and checked on-chain.

Failure classesIncidents
Logic error
74
Private key compromise
43
Access control
34
Oracle manipulation
33
Flash loan attack
25
Reentrancy
22
Nine other classes
49
EVM events, by share300+ EVM events
Logic errors
67%
Private key compromise
18%
Rug pulls
9%
Social engineering
4%
Other
2%

Logic errors are the class an invariant states most cleanly.

Euler Finance, 13 March 2023

  1. 1Event

    $197m

    Logic error, against $264m of TVL and 6 audits.

  2. 2Invariant

    HF < 1.0

    Manipulated collateral valuations let borrowed value exceed collateral times the liquidation threshold.

  3. 3Trigger

    On-chain

    The broken condition is readable from the same state the exploit wrote.

  4. 4Settlement

    Principal

    The covered principal would pay out against that reading, with no filing.

Sources: Markoff exploit dataset, 280 incidents compiled from Rekt, DefiLlama and public post-mortems, with audit findings from Solodit, Code4rena, Sherlock and Immunefi. TVL is recorded for 166 incidents and audit counts for 147. Charts use fields present for every incident. Market figures from DefiLlama hack data.

Buy cover, or supply the pool.

Markoff is pre-launch. Cover buyers, pool suppliers and wallet partners are being matched from the waitlist.