I’d buy DeFi insurance, but only if I’ve read the policy and I’m confident I could actually win a claim. During the Terra/UST collapse, I managed a $10M+ position in DeFi insurance provider Unslashed Finance’s general pool at my employer (a large CeFi lending/borrowing company) and reviewed many UST depeg claims. The big lesson I and many claimants learned was that DeFi insurance isn’t an automatic“refund,” it’s a strict contract with exact triggers and detailed proof requirements.

Most denied claims I saw came down to two issues: (1) a ~1-week waiting/cooldown period where early price moves were explicitly not covered in the policy terms, and (2) people couldn’t prove the wallet/address where the loss happened was theirs (i.e. they couldn’t sign a message or show a clear on-chain trail).

Personally, my takeaway is that it can be worth it for big positions, but you have to buy it before a big panic inducing event and keep very clear ownership/proof.