1. What Is DeFi Insurance?
It is a decentralized insurance service that compensates for funds lost through smart-contract hacks or bugs.
2. Major Insurance Protocols
- Nexus Mutual — The largest DeFi insurer described here; KYC required
- InsurAce — Multichain support with no KYC requirement
- Unslashed Finance — Exchange and staking coverage
3. Coverage
📊 What Is Covered?
Covered: Smart-contract hacks, oracle failures, and depegging
Not covered: Personal mistakes such as phishing, market-price declines, and rug pulls, with some exceptions
4. Risk Management in AI Trading
The guide claims that AI trading has no hacking risk because it does not use DeFi smart contracts, describing activity conducted purely through exchange APIs as safe trading.