De-Peg Insurance Purchase Tool

WHAT IT DOES

This tool provides on-chain purchase and management of de-peg insurance policies, protecting against stablecoin or asset de-pegging events. It reads your connected wallet address, insurance pool contract address, collateral token address, quote token address, premium amount, coverage amount, de-peg threshold, insurance duration, policy expiration timestamp, current block timestamp, premium payment history, policy status, and payout eligibility. You can then sign and send transactions to approve collateral token spending, purchase insurance policies, pay premiums, claim payouts when a de-peg event occurs, cancel policies, and record policy metadata on-chain. All policy parameters are displayed in a clear review panel before you sign, so you know exactly what you are purchasing. The tool also logs transaction hashes, confirmation status, and gas costs, providing a complete audit trail of all policy activities.

HOW TO USE

Connect your wallet using the built-in wallet bridge, choose the network that matches your insurance pool contract, and paste the pool contract address. Enter the collateral token address (e.g., USDC), the quote token address (e.g., USDT), the premium amount in raw units, the coverage amount you want to insure, the de-peg threshold in basis points (e.g., 500 for 5% deviation), and the insurance duration in seconds (e.g., 604800 for one week). The review panel shows all inputs and the current block timestamp before you sign. Use the numbered action buttons: approve collateral to approve the pool to spend your collateral tokens, purchase policy to buy insurance coverage, claim payout to claim your coverage if a de-peg event occurs, or cancel policy to cancel an active policy. You can also check policy status to view current policy state, eligibility, and expiry. Each transaction is signed sequentially, and the tool displays transaction details and confirmation status.

THE REAL MECHANISM

This tool uses ethers.js v5.7.2 to build and send transactions through the wallet's signer. It does not rely on any hardcoded contract addresses – you paste the contract you are using, so you are in full control. When you purchase a policy, the tool constructs a contract call to the purchasePolicy function, which checks the premium and coverage amounts, the de-peg threshold, and the policy duration. The contract then transfers the premium from your wallet to the pool and creates a new policy with the specified parameters. The policy is tracked by a unique policy ID, which the tool attempts to parse from the PolicyCreated event in the transaction receipt. When you claim a payout, the tool calls the claimPayout function, which verifies that the de-peg condition has been met (based on the contract's price oracle) and that the policy is still active. The tool also supports policy cancellation, which refunds any remaining premium if allowed by the contract. All transactions are sequential to prevent nonce conflicts, and gas costs are calculated using effectiveGasPrice for accurate post-EIP-1559 reporting.

WHAT IT CANNOT SEE

This tool cannot verify off-chain price feeds, detect real-time de-peg events, ensure insurance pool solvency, or verify that the insurance contract handles claims correctly. It cannot detect if the price feed used by the contract is accurate or if the de-peg event actually occurred. The tool also cannot verify that the pool has sufficient funds to cover all claims, or that the insurance contract correctly handles edge cases like multiple claims, partial de-pegs, or market manipulation. It cannot simulate the outcome of a transaction before you sign it, nor can it guarantee that the claim will be processed correctly if the contract is not properly implemented.

PLEASE NOTE

This tool works only on EVM-compatible chains supported by your wallet and provider. Always double-check the contract address, token addresses, and parameters before signing. Use testnet first. The tool is a transaction-signing interface and policy management tool, not a price feed validator or insurance solvency auditor.