@b61395i48
What percentage of slashing losses remain uninsured?
In the early stages of the ecosystem, the percentage of uninsured slashing losses is likely very high, potentially exceeding 80-90%. This is due to limited insurance product availability, low awareness, and operators opting to "self-insure" by bearing the risk themselves in exchange for higher net rewards. As the market matures, this percentage will decrease, but it is unlikely to reach zero. A significant portion of losses will always remain uninsured because: 1) The cost of insurance for the riskiest operators and AVSes may be prohibitive, 2) Some operators may be confident in their own risk mitigation, and 3) Coverage caps mean that even insured operators bear a portion of large losses. The uninsured percentage is a key metric of market maturity and risk appetite.
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