With Choise.com Price Insurance users receive the opportunity to insure the amount of crypto they want to buy for a certain period of time. And if the price of a given crypto appears to be less than the insurance price at expiry, Choise.com will cover the losses.
The scheme is as follows.
A user goes to Choise.com wallet and presses “Top up”, then selects the bank card paying method to purchase Bitcoin or Ethereum, or virtual card bitcoin, taps on the “With insurance” bar, fills in card details and selects insurance conditions.
When selecting the conditions, the user specifies the desired amount, chooses a suitable period (i.e. expiry date) and the insurance price. He can also go to FAQ by clicking on link “Not clear enough” and tap on the “i” icon to see information about fees.
It does not matter how the user buys BTC or ETH – for USD, EUR, any other fiat or crypto – the insurance conditions are always shown in USD. The insurance price will be charged in the payment asset and insurance coverage payment at expiry is always returned in USDT.
For example, the user buys 0.1 BTC at a $20,000 rate and covers it with the insurance rate of $18,000 for 30 days. He pays $2000 for 0.1 BTC and $X for insurance (the cost will be calculated in the App via mathematical algorithm) plus fees for the transaction. The exact amount of fees is calculated automatically for each transaction.
If after 30 days the BTC price is $18,000 or more, the insurance will expire.
If after 30 days the BTC price falls under $18,000, e.g. $17,000, the user will receive 0.1 x (18 000 – 17 000) = 100 USDT coverage.
Currently, Price Insurance is available only for Bitcoin and Ethereum purchases.
It cannot be sold ahead of schedule – just held until its expiration.
The user does not need to have BTC on his wallet for insurance to be working by the expiry. Insurance is a separate product and it will work without regard to the user’s BTC position. He will simply receive the price difference on insured volume to the wallet, and that’s all.
Active insurances are displayed in the wallet on the BTC or ETH pages. Also, detailed information regarding each transaction with insurance involved is available in the transaction history.