Key Terms

Actuarial Data Statistical data used to assess and price insurance risks.

Annual Percentage Yield (APY) The return stakers earn by providing liquidity to insurance pools.

BQ Chain The blockchain layer managing BQ Labs’ operations and governance.

Consortium A group of stakeholders overseeing governance and claims processes.

Governance The decentralized voting system for protocol decisions and claims.

Insurance Pool A pool backed by stakers, providing insurance coverage to proposers.

LIT (Liquid Insurance Token) Tradable tokens representing stakers’ share in the pool.

Parametric Insurance Automatically triggered payouts based on predefined conditions.

Proposer Users who purchase coverage to protect assets from risks.

Risk Assessment Evaluation of risks to adjust premiums and ensure pool sustainability.

Risk Infrastructure The system enabling sponsor to create pools and manage insurance.

Slashing Penalties for malicious behavior, reducing a staker’s stake.

Sponsor Lead Insurers who initiate and manage an insurance pool.

Staker A user providing liquidity to a pool in exchange for APY and LITs.

Underwriter An entity managing insurance pools and attracting stakers.

Validators Participants validating transactions and securing the BQ Chain.