FAQs

Find the answers to some of our most frequently asked questions.

What is OnRe and how does it work?

OnRe is the world’s first on-chain reinsurance company, allowing institutional on-chain capital to invest in real-world reinsurance risk. It bridges traditional insurance markets with DeFi infrastructure, unlocking a new asset class and yield opportunity through blockchain-based risk transfer.

OnRe connects regulated insurance programs with on-chain capital via the ONyc token. Cedents (primary insurers or MGAs) submit reinsurance proposals, which are underwritten and approved by the OnRe licensed insurer. Capital providers then allocate capital to the ONyc Pool and earn a share of the premiums paid by the cedent in return for taking on that risk. Capital is pooled, collateralized, and verifiable on-chain, with all movements transparently tracked and managed through smart contracts.

What is ONyc and what does it do?

Evolved from ONe, ONyc is a multi-collateral, yield-bearing asset backed by stablecoins and used to underwrite real world private placements and accrue yield from reinsurance premiums. ONyc targets a base yield exceeding 16%, driven by reinsurance performance that remains uncorrelated across market cycles. Alongside this base return, the collateral assets themselves contribute additional yield, resulting in a compound, multi-source return designed to deliver steady performance and capture upside as markets evolve.

How is yield generated and distributed?

The ONyc token appreciates in price as the performance of the pool increases. It is not a rebasing mechanism, but rather tracks the overall performance of our reinsurance business to provide a return to capital providers upon redemption.

Yield comes from three sources, distributed to ONyc holders on-chain, and reflected in the token’s value.

• Reinsurance premiums.

• Stablecoin collateral yield (e.g., sUSDe).

• Incentives for liquidity providers

What is the expected return or APY?

We target a 10-12% return on our insurance underwriting, with an additional sUSDe yield that ranges from approximately 4-15%.

What blockchains does OnRe support?

OnRe currently operates on Solana, taking advantage of low transaction costs and fast settlement.

What wallets are supported?

You can connect any Solana wallet supported by WalletConnect, including over 80 compatible options.

How do I fund my account or deposit assets?

Connect a supported Solana wallet, deposit USDC into the platform, and mint ONyc tokens. Your deposit is held in the program until the order is closed.

How can I redeem ONyc back to USDC?

You can use your ONyc tokens to redeem USDC, subject to applicable redemption windows, holding periods, and liquidity availability.

How can I withdraw or exit my position?

We run quarterly redemptions for primary withdrawals and will try to keep available redemptions to a maximum, whilst balancing capital utilization. Secondary trading is available 24/7 via the Orca liquidity pool.

Is OnRe regulated?

On Re SAC Ltd. is authorised and regulated by the Bermuda Monetary Authority. OnRe holds a Class F licence under the Digital Asset Business Act 2018 and a Class IIGB licence under the Insurance Act 1978. Registration number 55347.

What is a segregated account?

At OnRe, capital sits legally within a segregated account (SA), a legal structure to segregate assets and liabilities to an individual book of business. Our first SA is the ONyc Pool, collateralized in sUSDe, with the ONyc token as the technical enforceability of such segregation. This ensures the business plan of risk written against the ON reinsurance product is contained within this structure, executed by the SAC with the assistance of experts from outside OnRe.

What types of programs can be reinsured on OnRe?

OnRe supports a range of regulated insurance programs, including specialty lines (cyber, crypto-related risks, travel, marine) and property catastrophe (Industry Loss Warranties in US and Global windstorm and earthquake). All programs undergo rigorous underwriting and due diligence before onboarding.

Who can access coverage through OnRe?

1. Cedents (coverage seekers): Regulated insurance entities such as MGAs, carriers, and mutuals.

2. Capital Providers (yield seekers): DAOs, crypto-native funds, accredited investors, and institutional investors looking for stable, non-correlated returns.

Note: OnRe tokens can be sold or transferred to other wallets at any point after acquisition. Secondary trading across certain AMM DeFi pools is also possible for enhanced liquidity.

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: OnRe is fully licensed and compliant in key jurisdictions, enabling it to write regulated reinsurance risk.

• Real yield, not token emissions: Returns come from actual insurance premiums, not inflationary token models.

• ONyc composability: The ONyc token is composable across DeFi allowing for secondary liquidity and use as a collateral asset (e.g. lend/borrow).

• Institutional access: Designed for DAOs, crypto funds, and qualified investors looking to diversify with low-correlated yield.

• Transparent and auditable: All capital positions, premiums, and loss ratios are visible and verifiable on-chain.