Narrative
Introduction
oscaX introduces a revolutionary concept to the DeFi space: real-time, opt-in insurance for token trades. This mechanism provides protection against rug pulls, smart contract vulnerabilities, and liquidity-related risks by combining powerful AI-driven analysis with a seamless insurance experience.
This guide explains:
What the insurance layer is
How it works under the hood
What steps to follow as a user
Example scenarios
How insurance payouts are handled
🔍 What is the Insurance Layer?
The insurance layer on oscaX allows users to protect their token purchases against:
Rug pulls
Scams
Smart contract exploits
Liquidity drain events
When enabled, users can pay a small insurance fee based on the risk profile of the token (calculated by oscAI). In return, if the token is later deemed malicious or suffers a catastrophic event, the user's investment is partially or fully reimbursed based on how much of their position is affected.
🧠 How It Works – Under the Hood
Risk Assessment by oscAI Before every trade, the token is automatically analyzed using oscAI. A rating from 0 to 100 is generated. Higher rating = lower risk.
Insurance Pricing Logic The insurance cost is dynamically calculated based on the oscAI rating. Example:
91–100: 2% fee
81–90: 5% fee
71–80: 8% fee
50–70: 10% fee (Only tokens with a rating ≥ 50 are insurable.)
Opt-In at Checkout When you trade a token on oscaX, you’ll see an option to toggle insurance coverage. The insurance fee is displayed clearly.
On-Chain Purchase Your purchase and the insurance registration are submitted in the same transaction, logged and tied to your wallet.
Coverage Period Your insurance covers the amount of tokens you still hold at the time of an incident. If you sell part of your tokens, the remaining amount is still covered proportionally.
Event Detection If a covered token is later:
Marked as a scam by oscAI
Suffers a verified hack or liquidity rug
Becomes irreversibly untradeable
…the insurance activates.
Claim & Reimbursement After verification, you’ll receive a refund (in ETH or stablecoins) equivalent to the dollar value of the covered tokens at the time of purchase.
🧾 Step-by-Step: How to Buy a Token with Insurance
Open the oscaX Swap Interface → [Coming Soon on OSCA Stack Platform]
Choose a Token You can either trade:
A token listed directly on oscaX, or
A token listed on Uniswap or PancakeSwap (we integrate with external DEXs)
Enable the Insurance Toggle You'll see the oscAI rating and an option to enable insurance for the trade.
Review Insurance Fee The interface will calculate and display your:
Total trade amount
Insurance fee (in ETH or token)
Total including insurance
Execute the Trade Confirm the transaction in your wallet. Once approved, your trade is executed and insurance coverage is active.
Track Your Coverage You can always see your insured trades and their current status in your Insurance Dashboard (available via oscaX platform UI).
📘 Real-Life Example
Alice buys $5,000 worth of TokenXYZ with an oscAI rating of 82/100
Insurance fee is 6% → $300
She sells 20% of her tokens later, still holding 80%
One week later, the token is rugged and becomes valueless
Alice’s insurance pays her $4,000 back (value of the covered 80%)
💡 Notes & Additional Info
Insurance fees fund the compensation pool and protect users collectively
The insurance feature is opt-in and not mandatory
OSCA Staking Holders:
1,000–4,999 OSCA staked → 50% discount
5,000+ OSCA staked → no insurance fees at all
The insurance system currently supports ETH, USDT, and more tokens soon
🌐 What Chains & DEXs Are Supported?
Initial support:
Ethereum Mainnet
Uniswap V2 & oscaX internal pairs
Coming soon:
PancakeSwap (BSC)
Polygon, Base, Arbitrum and more
All DEX trades will be protected — oscaX becomes your security layer for any DeFi trade.
🚀 Coming July 2025
The Insurance Layer will launch in July 2025 and become publicly available via the oscaX platform and integrations with supported DEXs.