To avoid wallet authorization scams, never sign a "setApprovalForAll" request or any transaction you don't fully understand. Use a wallet that previews transaction effects. Reject any request for your seed phrase. Employ a hardware wallet for an added layer of security. Before signing, verify the contract address on a block explorer. Use a "burner" wallet for all unknown airdrop interactions. Regularly check and revoke unnecessary approvals on a site like revoke.cash to minimize exposure.
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Full coverage requires 150-200% collateralization, making it capital inefficient for most operators. The locked capital's opportunity cost typically exceeds the risk reduction benefit. Partial coverage at 50-80% with 100-120% collateralization represents a more efficient risk-transfer solution for both operators and insurers.
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Can insurance cover more than 90 % of slashing losses? It is technically possible, but such high coverage would come with prohibitive premiums and strict conditions. A policy covering >90% of the slashed stake would expose the insurer to a near-total loss scenario, mirroring the operator's own risk. To offer this, the insurer would need to: Charge Extremely High Premiums: The annual premium could easily reach a significant percentage of the staked amount, potentially making the net risk-adjusted return unattractive. Impose Strict Security Requirements: Mandate the use of specific, audited clients and infrastructure, and require proof of active monitoring. Exclude Certain Risks: The policy would likely exclude coverage for slashing events stemming from governance decisions, protocol upgrades, or acts of war/regulation.
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