1.The objective of this proposal is to provide policyholders with the flexibility to cancel their active insurance coverage and receive a refund for the unused portion of their policy.
1.Policyholders ahould have control over their insurance coverage and the ability to opt-out if desired.
2.In DeFi protocols, it is common for yields to fluctuate, presenting an enticing opportunity for users to maximize their returns. However, the challenge arises when the yield unexpectedly decreases, potentially falling below the percentage covered by their insurance.
Refund Amount = (Remaining Days / Total Days) * Premium Amount
In this formula:
“Remaining Days” refers to the number of days remaining in the insurance coverage period.
“Total Days” represents the total duration of the insurance coverage.
“Premium Amount” is the initial premium paid for the insurance coverage.
Governance and Implementation:
1.The cancellation and refund mechanism will be governed by the Olympus DAO.
Terms and Conditions:
1.The Olympus DAO holds the authority to determine any applicable fee associated with policy termination. This decision-making power allows the DAO to ensure the sustainability and effectiveness of the insurance protocol.
Refund Amount = (Remaining Days / Total Days) * Premium Amount - Any Applicable Fee
Conclusion( My personal thoughts ):
1.While this specific feature may not have been implemented by other protocols yet, it aims to provide policyholders with greater control and participation.
2.Introducing a cancellation and refund mechanism has the potential to boost insurance coverage adoption on our dapp.