📄Coverage Policies

Covered Events

• Code Vulnerabilities: Exploits in Sonarix’s smart contracts or upgrade paths

• Oracle Attacks: Malicious price manipulation resulting in bad debt

• Liquidation Failures: Insolvency due to market events causing failure of the liquidation engine

Exclusions

• User Negligence: Losses due to compromised wallets, phishing, or key mismanagement

• Unsupported Tokens: Any asset not officially listed by Sonarix

• Governance Risk: Proposals passed by governance that lead to loss are considered a DAO-level issue and not covered by insurance

Risk Tiering

Assets may be assigned a risk tier:

• Tier 1: Fully insured (core stablecoins, blue-chip assets)

• Tier 2: Partially insured or capped

• Tier 3: Not insured (experimental or volatile tokens)