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Terms of Ease Coverage

Terms of Coverage

The overall Terms and Conditions and Disclaimer/warnings are valid for all users, please make sure to read and understand those.

While a user holds an ez-token they agree to contribute their underlying assets to the Reciprocal Coverage Ecosystem.

This ecosystem provides coverage for the underlying assets’ full value in ETH, minus what is charged whenever a hack occurs to one of the vaults in the aforementioned ecosystem. This process is described in the Liquidation Procedures.

This charge to the user’s underlying assets is only used to proportionally distribute the loss event throughout every RCA vault in the Reciprocal Coverage Ecosystem, including the RCA Vault that directly suffered the loss.

None of the charged amounts will go to the ease treasury or team.

The calculations for this exact charge on a user’s underlying assets is ultimately determined by the Decentralized Autonomous Organization (DAO), not the Ease team. The DAO’s calculations are dependent on the following factors:

  1. The total value of loss in the ecosystem.
  2. The total value locked in the entire ecosystem.

Currently, this loss will be of an equal proportion in every vault.

Once the upcoming Risk Index functionality is activated, the exact charge will also be dependent on the relative risk ranking of the vault/protocol that suffered the loss.

Coverage Period

  1. A user’s underlying tokens are covered for as long as they are in ownership of an ez-token.
  2. Coverage is only terminated upon successful execution of the “finalize withdrawal” (finalize) transaction. At that moment the user receives the underlying assets back into their wallet.

Prior to the “finalize” transaction, there is a “withdrawal request” transaction (function= redeemRequest).

After this “Withdrawal request” is executed (the Withdrawal Request has started), there is a 24-hour delay until a user can finalize. During this period, the user’s tokens will no longer continue to earn yield. However, they will still retain coverage (they are still covered by the ease Uninsurance system) and will still function as collateral to the Uninsurance ecosystem.

This also means that until the “finalized” transaction is executed, the deposited tokens can be charged in case of a hack, as defined below. 

Scope of Coverage

DISCLAIMER: The DAO is a group of diverse individuals. This entity ultimately determines whether or not a loss event falls under the scope of coverage and which amount will be charged to the ecosystem.

The cover includes loss of funds resulting from any of the below occurring on the top protocol and any in the protocol stack, (noted in the vaults info panel on the app). 

  1.  Code being used in an unintended way resulting in withdrawal of underlying assets in the protocol stack
  2.  Economic Design Failure resulting in the unintended confiscation or seizure of underlying assets deposited into the top protocol or stack directly by the RCA vault.
  3.  Deliberate governance attack on a protocol in the stack that results in confiscations or seizure of underlying assets.
  4.  Oracle Failure through deliberate manipulation, resulting in discrepancy from observed market rates that causes unintended withdrawal or liquidation of underlying assets in the stack.
  5. Oracle Failure through discrepancy from intended data sources that causes unintended withdrawal or liquidation of underlying assets in the stack.
  6.  Privileged authority within the protocol stack acting in bad faith (i.e. rug pull), that results in a unintended withdrawal of underlying assets.
  7.  Negligence of privileged authority within the protocol stack that results in a unintended withdrawal of underlying assets (I.e, phishing attempt compromises an admin of a protocol that results in loss of underlying assets directly from the protocol).

As mentioned above: these are guidelines, the exact decisions will be made by the DAO.


  1. Any events or losses resulting from movements in the market price of the underlying assets or other assets used in the top protocol or the protocol stack.
  2.  Any event or losses resulting from movements in the market price of the underlying assets or other assets used in the top protocol or the protocol stack as a result of a hack that did not directly affect that stack. (Fear, Uncertainty and Doubt are not covered).
  3.  Loss of RCAs due to user negligence. If a user loses access to the wallet containing their Ez-tokens, the Reciprocal Coverage Ecosystem nor the team of Ease are responsible. Neither the Ease team nor the ecosystem will be able to recover the Ez-tokens or the underlying assets to the user.
  4.  Any extended loss of peg to a stable coin asset from its intended USD value will not be covered by the ecosystem.

APY & Yield

  • The Uninsurance system offers the exact same APY’s as the user would earn when depositing directly at the top protocol (in which case the user would not be covered).
  • The ease team and treasury do not charge anything and the full APY/yield is passed on to the user that deposited the tokens.
  • The displayed APY’s on the ease Uninsurance app are taken from public APIs provided by the underlying protocols. Due to caching, there might be slight differences either way in the shown APY vs the APY that is shown on the top protocol’s website/app. However, the actual value accrual is exactly the same as on the underlying protocols, as the tokens are deposited there by the ease Uninsurance system.



  • Top Protocol: A vault’s top-level protocol, that the underlying asset is distributed by. For example, yv-tokens are distributed by Yearn Finance, making Yearn Finance the top protocol of all yv-Token vaults.
  • Underlying assets: The tokens that are deposited directly into the RCA vaults.
  • RCA Vault: AKA Uninsurance or Ease vaults. These are the vaults that receive the underlying assets and provide users Ez-tokens in exchange.
  • Reciprocal Coverage Ecosystem: AKA, the Uninsurance ecosystem. The system that allows the RCA vaults to proportionally distribute any loss that occurs to one vault, to the rest. As long as that loss meets the scope of coverage in the eyes of the DAO.
  • Ez-Token: This is the coverage wrapped token received by the user after depositing an underlying asset into an RCA Vault. This is proof of ownership and proof of coverage for the underlying assets.
  • Protocol Stack: A vault’s top protocol might engage in a strategy that involves distributing assets in multiple other protocols beyond the top protocol. The total of the underlying protocols including the top protocol is referred to as the stack, or protocol stack.
  • Stacked Risk: The accumulative risk of every protocol involved in the protocol stack.
Previous RCA, “Uninsurance” Whitepaper.
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