Frequently Asked Questions

What is OnRe?

OnRe is the world’s first onchain reinsurance company, giving onchain capital access to regulated, real-world reinsurance risk through transparent onchain settlement. Cedents (insurers or MGAs) submit programs to OnRe, which are underwritten and approved through OnRe’s licensed insurer. Capital from the ONyc Pool collateralizes approved placements, and capital providers earn a share of reinsurance premiums.

What is ONyc?

OnRe Tokenized Reinsurance (ONyc) is a yield-bearing token backed by stablecoin collateral and real-world reinsurance underwriting through the ONyc Pool. When a user mints ONyc, their capital enters the pool to collateralize short-duration insurance and reinsurance placements. ONyc’s value (NAV) changes over time based on pool performance.

Is ONyc a stablecoin?

No, ONyc is not designed to maintain a fixed $1 peg. It is a NAV-based, yield-bearing asset whose value changes based on underwriting performance (premiums, claims, reserving) and collateral yield.

Where does yield come from?

Yield comes primarily from reinsurance premiums paid by cedents. The pool also earns yield on stablecoin collateral held in the pool.

How does yield accrue to ONyc holders?

ONyc is a non-rebasing token. Yield accrues through changes in ONyc’s NAV over time and is realized on redemption or via secondary liquidity

What is the expected return or APY?

OnRe targets a 10-12% base APY from underwriting performance. Additional yield may come from stablecoin collateral held in the pool (depending on collateral mix and prevailing rates).

Which assets can I use to mint ONyc?

Users can mint ONyc by depositing supported collateral, USDC and USDG through the OnRe app.

How do I mint ONyc?

Connect a supported Solana wallet, deposit supported collateral, and mint ONyc through the app. Deposits are held in the program until the order is closed.

How can I redeem ONyc back to USDC?

You can redeem ONyc for USDC or USDG subject to redemption windows, holding periods, and liquidity availability.

How can I withdraw or exit my position?

Primary withdrawals are available through the OnRe app. Secondary liquidity is available 24/7 via Orca, Raydium, Jupiter.

How does ONyc protect your capital during volatile markets?

Through a 4-layer framework:

• Layer 1: Conservative claim reserves

  • OnRe uses a highly conservative actuarial approach to estimate potential claims upfront. Before any yield is paid, expected claims are already reserved for, so the APY you see reflects expected losses.

• Layer 2: APY absorption

  • If claims exceed reserves (rare), the adjustment happens in yield, not principal. APY recalibrates over the contract duration, while NAV stays protected.

• Layer 3: Cross-contract support

  • OnRe underwrites multiple reinsurance deals simultaneously. If one contract experiences unexpected claims, premiums from other performing contracts help absorb the impact. Diversification protects the pool.

• Layer 4: Yielding asset reserve

  • A portion of the pool is held in yielding assets to:

    • support secondary market liquidity

    • backstop gaps in insurance contracts

    • provide an additional capital buffer

What blockchains does OnRe support?

OnRe currently operates on Solana, using fast settlement and low transaction costs.

What wallets are supported?

Any Solana wallet supported by WalletConnect (80+ compatible wallets).

Is OnRe regulated?

OnRe SAC Ltd. is authorized and regulated by the Bermuda Monetary Authority. OnRe holds:

• a Class F licence under the Digital Asset Business Act 2018

• a Class IIGB licence under the Insurance Act 1978

Registration number: 55347

What is a segregated account?

OnRe structures capital within a segregated account (SA), a legal framework that separates assets and liabilities for a specific book of business. The ONyc Pool operates within its own SA, meaning the pool’s assets and liabilities are ring-fenced from other activities.

What types of programs can be reinsured on OnRe?

OnRe supports regulated insurance programs including specialty lines and property catastrophe exposures. All programs undergo underwriting and due diligence before onboarding.

Who can access coverage through OnRe?

• Cedents (coverage seekers): regulated insurance entities such as MGAs, carriers, and mutuals

• Capital providers (yield seekers): DAOs, crypto-native funds, accredited investors, institutional investors, and other qualified allocators seeking stable, uncorrelated returns.

Who qualifies to acquire coverage?

• Sufficient income:

  • Individual: $200,000 this year and past two years; $300,000 if joint with spouse

  • Corporations: Underlying shareholders or beneficiaries meet individual threshold

• High net worth:

  • Individual: $1 million, singly or joint, excluding residence and beneficial insurance

  • Corporations: Underlying shareholders or beneficiaries meet individual threshold

• Substantial assets:

  • Individual: Not applicable

  • Corporations: ≳ $5 million

I'm a broker, how can I work with OnRe?

To work with OnRe, brokers must complete a Terms of Business Agreement and be capable of placing business in Bermuda. For more information contact [email protected].

What makes OnRe different from other reinsurance or DeFi platforms?

• Regulatory-first: licensed to write regulated reinsurance risk

• Real yield: returns come from premiums, not token emissions

• Composability: ONyc can be used across DeFi and may have secondary liquidity

• Built for allocators: designed for DAOs, funds, and qualified investors

• Verifiable: pool activity and capital movements are transparent and auditable onchain