🏛️How insurance works?
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Pre-Raydium: All tokens come with 100% insurance, allowing you to sell them at any price and at any time before they hit Raydium. This ensures a risk-free exit with zero loss.
Post-Raydium: Once the token hits Raydium, all tokens are offered with a minimum of 10% and a maximum of 50% insurance bonds.
The insurance pool is created from the total investment received until the token reaches the bonding curve. This means a certain percentage of the funds raised will be added to the insurance pool while the remaining funds go to the liquidity pool (LP).
The percentage allocated to the insurance pool is determined by the token deployer within the range of 10-50%. The higher the percentage offered by the developer, the more saafu the project is.
Insurance bonds are activated the moment the token hits Raydium and are valid for the next 24 hours.
During these 24 hours, if the token price drops significantly due to a rug pull or lack of momentum, users can claim back their insured SOL from the insurance pool.
Investors can claim tokens or SOL even within the first minutes of the commencement of the insurance period. There is NO restriction. If they claim tokens, the SOL is immediately transferred to the dev. However, if they claim SOL, the tokens are immediately burned, creating a deflationary boost.
After 24 hours, the insurance expires, and dev can claim all SOL from the insurance pool, leaving tokens with the investor. These features ensure a safer investment environment, giving users confidence and protection against potential losses.
