FAQs

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

What is OnRe?

OnRe is the world’s 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.

How does OnRe work?

OnRe connects regulated insurance programs with on-chain capital via the ONe 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 ONe 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 makes OnRe different from other reinsurance or DeFi protocols?

• 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.

• ONe composability: The ONe 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.

Who can use OnRe? / 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, 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.}

What are the requirements to being a qualified acquirer?

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 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.

What is the ONe token?

The ONe Token represents participation in the first ON Pool, defined as passive economic interest, whose terms and conditions are laid out in a participation agreement that all Capital Providers must sign along with OnRe. ONe tokens are issued uniquely in respect of the ONe SA (segregated account), and their holders are the owners pro rata of the account, entitled to a return on their investment.

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 ONe Pool, collateralized in sUSDe, with the ONe 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.

How do I earn yield on OnRe? / How is yield generated and distributed?

The ONe 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.

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%.

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 will be made available 24/7.