Spot cover
Assume the following case that user A owns:
Asset: 15 BNB (298 USDT)
Price to be insured: 285 VND
After having enough parameters, the user uses the Calculator tool to select Spot and enter all into the spreadsheet (left board).
By intelligent algorithms, Nami Insurance gives suggestions for the insurance contract for the user's assets (right board).
Case 1: User A receives insurance payout (Q-Claim)
In this case, the Nami Insurance system automatically pays insurance worth 599.98 USDT to the user's wallet. Although the price of BNB/USDT has decreased, the 15 BNB loss (in the example -195 USDT) has been covered by Nami Insurance.
Actual P&L: 599.98- 400 + (-195) = 4.98 USDT
Case 2: Margin Refunding
In this case, there will be 2 situations:
When eligible to stop the contract before the period time, user A chooses to stop the contract will receive a Q-Refund corresponding to the margin value of $400
At the time of contract termination (T-Expire), P-Market is in the P-Refund to P-Claim zone, user A receives a Q-Refund corresponding to the margin value of $400
Case 3: Contract expired
In this case, there will be 2 situations:
During contract validity, P-Market touches P-Expire
At the end of the contract (T-Expire), P-Market is in the range from P-Refund to P-Expire
When 1 of 2 situations occurs, the user is not entitled to a Refund. However, at this time the user's insured assets (15 BNB) have also made a profit due to the uptrend of the market.
Note: Besides depositing hedging assets, users can also take advantage of Nami Insurance during the uptrend of the market to optimize profits.
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