Frequently Asked Questions
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If you've suffered a wallet drain, immediately secure your remaining assets. Then, file a claim with Fairside by providing your wallet address, details of the incident, and the date of the loss. Our team will guide you through the process and ensure your claim is handled promptly.
We're really sorry to hear you lost these assets. Rest assured, you're in good hands, and we've built a system to prioritize accurate valuations. Here's how we calculate the value for each type of asset:
ETH and Altcoins:
- ETH: The value of your ETH is straightforwardly calculated based on the market price at the time of loss.
- Altcoins: Similarly, altcoins are valued based on their market price at the time of loss. On rare occasions, for altcoins with extremely low liquidity, we will evaluate them on a case-by-case basis to ensure a fair and accurate valuation.
NFTs:
For you:
- Self-Report: You'll just need to fill out a self-report detailing the NFT's valuation at the time of loss. This gives you the chance to notify us of aspects that may affect its valuation- such as locked tokens, IP prominence, and rarity.
For us:
- Appraisal Services: We gather data from three reputable NFT appraisal services
- Internal Valuation: Our internal team conducts an independent valuation considering factors like floor price, standing offers, past sales, and rarity.
- Comparison and Review: We compare the internal valuation with the data from appraisal services and your self-report to ensure accuracy.
- Manual Review: A final manual review is conducted to confirm the valuation.
If you disagree with the final NFT assessment, please file an appeal for a reassessment.
This process ensures that you receive a fair and accurate payout based on the current market conditions and comprehensive evaluations.
If you receive a payout that is more than expected, there's no need to return the excess amount. Occasionally, adjustments or additional assessments may result in higher payouts. This is part of our commitment to ensuring fair and accurate compensation. If your payout is less than expected, we're sorry it didn't meet your expectations! We have a robust system for valuations, but if you think we made a mistake, please file an appeal. Fair and accurate valuations are a core value of ours. Any additional information or evidence you provide will help us review your case promptly and thoroughly.
The claims process is straightforward:
- File a Claim: Submit your affected wallet address, transaction hashes where loss occurred, details of the loss event, and the date of the incident.
- Pay a Claim Fee: A nominal fee (as low as 0.00195 ETH) kick-starts the process.
- Complete KYC: Quick KYC process through our verification partner, Synaps.
- Wallet Screening: Utilizing Elliptic's advanced relation and risk evaluation engine, Fairside investigators conduct an initial risk assessment.
- Intelligence Collaboration: Fairside engages with trusted third parties, such as SEAL-ISAC, to compare blockchain and public information.
- Governance Review: Fairside's core governance team receives a report from the investigations team (which does not include your personal details or KYC information) and makes a determination.
- Payout: Upon approval, you receive your payout.
For more information on Claims, refer to our GitBook
When you file a claim, you pay a nominal claim fee of 10% of the cost of your membership fee (.00195 ETH - .195 ETH depending on your membership plan). If your claim is approved, you'll receive a payout minus a 10% Personal Responsibility Amount. If your losses exceed your coverage plan by more than 10%, the Personal Responsibility Amount is fully waived, and you receive a payout for 100% of your plan.
Here's how it works in three scenarios:
| Coverage Plan | $50,000 | $50,000 | $50,000 |
| Total Loss | $25,000 | $50,000 | $100,000 |
| Claim fee (10% membership fee) | $97 | $97 | $97 |
| Personal Responsibility Amount (10% of total losses) | $2,500 | $5,000 | $10,000* |
| Remaining Coverage for Future Claims | $27,500 | $5000 | $0 |
| Total Payout | $22,500 | $45,000 | $50,000 |
*Since the individual lost more than their coverage amount, their personal responsibility amount is fulfilled, resulting in a full payout for their coverage membership.
Fairside utilizes proven risk management principles from the traditional insurance industry to enhance efficiency and ensure lasting sustainability
By covering isolated events within a globally diversified framework, we reduce risk correlation, which is essential for a robust and resilient coverage model. Despite our system's strong fundamentals, there is still a nonzero probability, as with many traditional insurers, that the funds held could deplete beyond our ability to share in losses. Although this scenario is unlikely, it is a potential risk.
Absolutely not! The volatility of Fairside's token does not impact our ability to pay out claims. Our token helps decentralize ownership and share rewards with our community when there's a surplus, but it has safeguards to prevent the pool from being fully drained, ensuring the integrity and availability of funds for members. If many people try to cash in their tokens at once, the system locks so that funds are available for valid claims. During this time, contributors can still trade their tokens on exchanges, and members can be confident that there are funds in our pool for claims.
You pay an annual fee of 1.95% of your desired coverage amount for year-round theft protection. For example, if you want to cover $3,000 worth of crypto, your membership would cost $58.50. If your $3,000 is stolen, you can file a claim for $5.85 (10% of the membership cost), and if approved, you'll receive a payout minus the 10% Personal Responsibility Amount (resulting in a total payout of $2,700).
At Fairside, we believe in a community-driven approach to coverage, which includes a Personal Responsibility Amount. Unlike traditional models that can have high fees and complex processes, we've adopted a straightforward model to ensure fairness and sustainability. The Personal Responsibility Amount is deducted from your payout, not your coverage, reflecting your involvement in the incident while maintaining a robust fund for everyone's benefit. This means we cover 90% of your loss, ensuring you get the support you need.
Key Features of this Approach:
Retain Your Coverage: Fairside covers 90% of your loss, with the Personal Responsibility Amount deducted from your payout, not your coverage. This ensures you still have 10% coverage available in your membership for future claims.
Full Payout for Major Losses: If your total losses exceed your membership plan by more than 10%, your Personal Responsibility Amount is considered fulfilled, and you receive a full payout for your membership plan.
This approach fosters a fair and transparent system, supporting the community while ensuring affordable, sustainable, and comprehensive coverage.
Fairside employs numerous fraud prevention measures. Our internal investigations department has implemented rigorous guidelines for every claim, including on-chain analysis, risk analysis, identity verification, and personal interviews. We collaborate with trusted, top-tier security partners throughout the entire process.
Fairside is an insurance replacement. Unlike traditional insurance, which involves a company assuming risk for a premium, Fairside uses a cost-sharing model. Members contribute to a capital pool, which is used to cover losses. This decentralized approach minimizes overhead and returns excess capital to members as yield.
Yes, we do! We understand valuing NFTs are a complex process, so we've built a robust, multi-pronged system to ensure our community receives fair and accurate payouts:
- User Input: Users provide insights on unique attributes of their NFTs, including rarity, IP prominence, and other relevant features.
- External Appraisals: Aggregated from reputable NFT appraisal services.
- Internal Valuation: Based on factors like floor price, standing offers, past sales, and rarity.
- Cross-Reference: All valuations are compared and reviewed for accuracy.
- Appeals: If you disagree with our valuation, you can appeal for a reassessment.
No, you do not need to complete KYC to sign up for Fairside. However, if you need to file a claim, you will be required to complete a quick KYC process through our partner, Synaps. Your KYC information is securely held by Synaps and is only accessed by us in cases of suspected fraud. This ensures the integrity of the claims process while protecting your privacy.
The permissionless nature of blockchain technology means anyone can participate without needing permission from a central authority. While this promotes freedom and innovation, it also makes self-custody of assets vulnerable to theft. Coverage is necessary because, with self-custody, you are solely responsible for the security of your assets.
Fairside takes security very seriously. We have conducted smart contract audits with independent security experts, Sherlock.xyz and Consensys Diligence, while Vulnerability Assessment Penetration Testing (VAPT) testing has been managed by Chainthreat. You can find our Consensys Diligence Audits in our GitBook
Signing up is simple:
- Select Coverage Amount: Decide how much coverage you need (1-100 ETH).
- Register Wallet Addresses: Add the addresses you want to be covered.
- Make Payment: Pay the membership fee in ETH.
At Fairside, our goal is to process and pay claims within 48 to 72 hours. For larger or more complex claims, it may take additional time to thoroughly assess the loss. Our priority is to provide you with the financial relief you deserve as quickly as possible. The speed of claim processing also depends on how promptly and accurately members submit the necessary information. We're committed to supporting you in your time of need and ensuring a smooth, timely claims process.
Yes, you can choose a coverage amount between 1-100 ETH, based on your needs.
Fairside is funded through membership fees and deposits to the CapitalPool:
- Membership Fees: Users contribute membership fees, which provide the primary revenue to sustain the network and fund coverage payouts.
- Capital Pool Deposits: The Capital Pool acts as a dynamic reserve, growing through member participation and the bonding curve mechanics. These deposits ensure the network can meet claims and scale sustainably.
This simple and efficient funding structure ensures that Fairside remains community-driven while maintaining the financial stability needed to provide comprehensive wallet coverage.
- Low Fees: One-time fee of 1.95% for year-round coverage.
- Swift Payouts:Claims paid out within days, not months.
- Comprehensive Coverage:Includes NFTs, RWAs, ETH, and more.
- Transparent Processes:Clear and open claim handling.
- Community-Driven: Excess capital benefit the community rather than executives.
Fairside primarily focuses on covering forms of theft that result in wallet draining. This includes protection against phishing attacks, social engineering, malicious transactions / signatures, address poisoning malware, and other threats that lead to the unauthorized removal of assets from your wallet. However, we do not cover losses related to bad investments, smart contract failures, or rug pulls. For a complete list of covered events, please refer to our coverage details.
Every transaction and claim is recorded on the blockchain, providing complete transparency. Members can see how funds are used and trust that the system is fair and open.
Fairside covers wallet draining. There are various forms of "delivery methods" that are used to steal user's funds, generally a form of Phishing or Social Engineering trick a user into giving up sensitive information or taking an action that results in a loss. The 3 most common forms of wallet draining are:
- Malicious transactions and/or signatures
- Address Poisoning
- Private key or seed phrase compromise (malware)
Malware coverage only applies to memberships of 15 ETH and above
These scams may vary in how they appear to users — this section breaks down the methods associated with these types of theft to help our users determine if their loss will be covered.
These covered events focus primarily on scams that target the Ethereum and EVM based chains that Fairside covers, but can also take place on the other platforms we support.
For complete information on our coverage refer to our GitBook
Each membership can add up to a maximum of 10 wallets to their account.
