The ether.fi Cash Protection Program is not yet live.
Once launched, the Program may reimburse eligible members for certain losses caused by unauthorized activity involving covered ether.fi Cash smart contracts. The amount available will depend on your membership level, and eligibility requirements and exclusions will apply.
Program availability will be limited to eligible accounts and subject to applicable limits and conditions.
How much protection will be available?
The maximum amount you may be reimbursed will depend on your membership level at the time of the covered event.
Membership level | Maximum reimbursement |
Core | $10,000 |
Luxe | $50,000 |
Pinnacle | $200,000 |
Business | $200,000 |
VIP | $500,000 |
The Program will have a total capacity of $5 million. If eligible, verified losses exceed the amount available under the Program, the amount reimbursed to each affected member may be reduced. Your reimbursement will also be subject to the maximum for your membership level.
The reimbursement limits will apply across each annual Program Period and will not reset after an individual covered event.
What will the Cash Protection Program cover?
Once launched, the Program may cover certain situations where a third party causes assets to leave your vault without authorization through a covered ether.fi smart contract.
The smart contracts listed for coverage are:
EtherFiSafe on Optimism
CashModule on Optimism
ether.fi may update the list as new contracts are deployed or existing contracts are upgraded.
Who will be eligible for reimbursement?
To be eligible, your account must meet all of the following requirements at the time of the covered event:
You must have an eligible membership level.
Your account must be in good standing and must not have been involved in or contributed to the incident.
Your account must meet applicable sanctions, watchlist, and legal screening requirements.
The default ether.fi recovery service (https://etherfi.gitbook.io/etherfi/products/cash/vault#recovery) must be configured and active.
You must have approved KYC verification with ether.fi. Pending, expired, rejected, or withdrawn verification isn't eligible.
What won't be covered?
The Cash Protection Program will not cover losses related to:
Your private key, credentials, passkey, or device being compromised.
Oracle failures, including Chainlink feed failures and price function errors or manipulation.
Exploits through modules other than CashModule.
Market or price losses, stablecoin de-pegs, or yield shortfalls.
Third-party protocols, bridges, or systems outside the covered smart contracts.
Assets flagged as illicit or sanctioned by blockchain analytics providers.
War, chain-level or consensus-layer failures, or forks affecting Optimism or Ethereum.
An exception applies to deliberate theft by an ether.fi employee using privileged access. Such losses are excluded from the insurance-funded portion of the Program but may be covered by ether.fi's $3 million first-loss commitment, subject to the applicable reimbursement limits.
How will I report a suspected covered event?
Once the Program is live, ether.fi will generally try to identify affected accounts using on-chain data after a suspected covered event.
If you believe you've been affected by a covered event after the Program launches, you will also be able to contact us via live chat within 10 days of the suspected event.
Will there be a fee to submit a claim?
Yes. If you submit a claim yourself, a $100 processing fee will apply and must be paid before your claim can be processed.
If your claim is approved, the fee will be refunded in full.
You won't need to pay the fee if ether.fi identifies your affected account through its own investigation without you submitting a claim.
How will my loss be calculated?
The value of lost assets will be calculated in U.S. dollars based on their value at the time of the covered event. The calculation will use the median price across major exchanges at that time.
How will I receive an approved reimbursement?
Verified reimbursements will be paid in USDC or its equivalent to a new vault or account that you designate, as the affected vault may no longer be usable.
Payment will be made within 60 days after verification.
Is the Cash Protection Program insurance?
No. The Cash Protection Program isn't an insurance policy, and participating in it won't make you an insured person or a beneficiary of an insurance policy held by ether.fi.
It's also not deposit insurance, isn't backed by the FDIC or another government deposit insurance scheme, and doesn't guarantee the value of your assets.
Where can I read the full terms?
This article is a simplified overview of the upcoming Cash Protection Program. For the complete terms, including eligibility requirements, exclusions, reimbursement limits, and the claims process, review the ether.fi Cash Protection Program: