Insurance Costs

Managing insurance costs

The insurance costs used for the jackpot are calculated in the audited smart contract based on these input parameters:

• The risk factor

• The number of tickets.

The risk parameter is an insurance industry standard approach. It allows the Nezha DAO to determine optimise the insurance cost and jackpot level for the best experience for participants. Furthermore, the risk factor input premium is bounded so the maximum and minimum costs are known.

Tickets are stored in Arweave at the start of each epoch, therefore participants and the Community can validate the number of tickets and costs.