@c15479n86
What’s the time delay between slash and payout?
The time delay is a direct function of the insurance model:
Parametric Insurance: Near-instantaneous. Payout can occur in the same block or within minutes, as it's fully automated via smart contract.
Decentralized Indemnity Insurance: This involves a claims assessment period and potentially a governance vote. This could take days to weeks, as it requires human coordination to verify the claim against policy terms and avoid fraudulent payouts.
Traditional Centralized Insurance: Could take weeks to months, involving manual review, paperwork, and potential negotiations.
The trade-off is clear: parametric insurance offers speed and certainty but may not cover all nuanced scenarios, while indemnity insurance offers broader coverage at the cost of speed and complexity.
0 reply
0 recast
0 reaction