PolkaCover Glossary Terms

  1. Actuarial team- The underwriting team that designs and formulates the insurance products
  2. Blackbox industry- A term used to refer to an industry which obfuscates its data and so outsiders cannot see the inner workings and/ or details
  3. Capital risk fund- Capital risk fund reflects the ability to lose part or all of an investment It refers to the entire asset gamut that is not subject to a complete return guarantee for original capital
  4. Centralised marketplaces- A structure for financial markets wherein all orders are routed to a central exchange and there are no competing markets
  5. Claim- The phenomenon of a policyholder requesting the insurance company to compensate them in case a covered event occurs
  6. ICO- Initial Coin offering. Investors can buy the token after its official listing on an exchange.
  7. Collateral- Something set against a loan as a security
  8. Coverage pricing- A practice of obtaining an artificially high price to show a higher level of competition
  9. CVR- PolkaCover’s proprietary token which people can use to purchase products on PolkaCover’s platform
  10. Data immutability- The concept that data cannot be changed at all
  11. Decentralized- In crypto, decentralisation refers to the delegation of power from governments which happens in the form of traditional currencies to crypto based currencies where users have the power
  12. DeFi/ DeFi Insurance- Decentralised finance is a system wherein traditional financial instruments are traded in the crypto space using blockchain technology
  13. Governance fees- This is a nominal platform maintenance fee to govern the platform
  14. Insurance claim settlements- When an insurance company pays a policyholder after they have made a claim
  15. Insurance DAO- Autonomous claims management
  16. IoT- Internet of Things A system wherein multiple Internet connected devices can transfer data independently, without human intervention
  17. Oracle chain- A named series of programs which have been linked together in order to fulfill a combined objective
  18. P2P insurance- Peer to peer insurance
  19. Parachain architecture- A data structure that is made use of by Polkadot
  20. Peer-to-peer- A model in which 2 people transact/ deal directly
  21. Phishing- The practice scammers engage in of masquerading as a reputable company and sending emails in order to access information
  22. Polkadot- Polkadot is a multi-chain interchange and translation architecture which enables customised side-chains to connect with public blockchains
  23. Pool commissions- A pool of money set aside just for commissions
  24. Premiums- An amount paid for insurance contracts
  25. Public ledger- Publicly available information about all transactions
  26. Reinsurer premium- The premium that the reinsurer receives from the insuring company
  27. Risk premium- The amount a holder would make from a risky investment that would incentivize them to prefer the risky investment as opposed to a risk free investment
  28. Self insure- When a person/ company sets aside a pool of money to be used to remedy an unexpected loss
  29. Smart contract- An embedded agreement within the code of a transaction between buyer and seller, usually in blockchain transactions
  30. Stakeholders- Those who are holding a token
  31. Staking- When a person locks their capital investment for a period of time in order to earn interest
  32. Stop loss insurance- A policy that protects insurance companies from large claims
  33. Substrate- A framework that allows for creation of purpose built blockchains
  34. Token burn- When tokens are removed from circulation in order to regulate prices
  35. Token- Tokens are used to raise funds for the cryptocurrency and can be used to purchase products from the issuer
  36. Validators- A validator is responsible for ensuring that transactions are accurate as well as legal
  37. Whitepaper- A technical document containing all the details of the project



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The First DeFi Insurance marketplace for the global crypto ecosystem