Last Updated on Feb 4, 2025
Nimble Insurance, LTD is an exempted company limited by shares, incorporated in Bermuda and licensed as a digital assets business by the Bermuda Monetary Authority with a Class T licence to operate as a digital assets services vendor and for the business of issuing, selling, or redeeming virtual coins, tokens or any other form of digital assets. Nimble Insurance, LTD also holds a class IGB license as an Innovative General Business Insurer.
Nimble Insurance, LTD (“Nimblr”) is an exempted company limited by shares, incorporated in Bermuda and licensed as a digital assets business by the Bermuda Monetary Authority with a Class T licence to operate as a digital assets services vendor and for the business of issuing, selling, or redeeming virtual coins, tokens or any other form of digital assets. Nimble Insurance, LTD also holds a class IGB license as an Innovative General Business Insurer.
Nimble Insurance, LTD operations are conducted under licenses within the Authority’s Regulatory Sandbox frameworks. As such, Nimble Insurance, LTD must comply with various legal requirements, including without limitation the Companies Act 1981, the Digital Asset Business Act 2018 and the Digital Asset Business (Client Disclosure) Rules 2018, and the Insurance Act 1978 (each, as amended from time to time). Should any of those laws change, the legal requirements to which Nimble Insurance, LTD and you may be subject could differ materially from current requirements.
As a Digital Asset Business and Innovative General Business Insurer operating within the Bermuda Monetary Authority’s regulatory Sandbox, there are certain risks associated with participating in the Nimblr platform. Nimblr maintains robust risk management protocols and actively works to identify and mitigate risks. Our team conducts regular security audits, maintains insurance coverage, and participates in ongoing testing. We endeavor to meet and exceed best practices for security and implementation of new features. Even with a robust set of security measures, there are still risks associated. These risks include, but are not limited to:
Technical Risks
Core technology operational risks affecting the protocol's functionality. Includes smart contract security, oracle reliability, and cross-chain operations that could impact policy execution or claims processing.
Smart Contract Risks, including but not limited to:
Potential vulnerabilities in code implementation
Risk of exploits in automated processes
Smart contract upgrade limitations
Transaction fee volatility impacting operations
Potential blockchain downtime or network congestions
Oracle Network Risks, including but not limited to:
Data feed manipulation or interruption
Node operator collusion potential
Latency in data transmission
Price feed accuracy variations
Data feed accuracy variations
Cross-Chain Risks, including but not limited to:
Bridge protocol vulnerability
Asset lock-up during transfers
Consensus delays
Business Model Risks
Challenges arising from operating a novel insurance model. Covers market adoption uncertainty, operational complexity of decentralized insurance, and financial stability concerns unique to blockchain-based insurance.
Market Risks, including but not limited to:
Limited historical data for DeFi Insurance risk modeling
Crypto market volatility impacts
Correlation risk in crypto assets
Competition landscape
Regulatory changes affecting market access
Operational Risks, including but not limited to:
Novel claims settlement processes
Constraint to secure reinsurance
Key person dependencies
Platform integration and scaling challenges
Financial Risks, including but not limited to:
Digital asset custody risks
Premium token volatility
Capital adequacy uncertainty
Collateral management complexity
Regulatory Risks
Compliance and oversight challenges specific to operating within Bermuda's sandbox framework. Includes potential regulatory changes, reporting requirements, and cross-border insurance operations.
Sandbox Specific Risks, including but not limited to:
Potential exit from sandbox framework
Changes to licensing requirements
Regulatory reporting challenges
Inability to meet regulatory requirements
Policy adjustment requirements
Cross-border compliance challenges
Compliance Risks
AML/ATF/KYC implementation challenges
International regulatory conflicts
Data privacy compliance
Consumer protection requirements
Tax treatment uncertainty.
Stakeholder Specific Risks
Direct impacts on policyholders and investors. Covers claim settlement processes, wallet security, token economics, and novel dispute resolution mechanisms in decentralized insurance.
Policyholder Risks, including but not limited to:
Limited legal precedent for automated claims
Novel dispute resolution and arbitration processes
Digital wallet management requirements
Premium denomination uncertainty and education
Coverage interpretation
Investor and LP Risks, including but not limited to:
Business model validation interpretation
Limited performance history
Token economic uncertainty
Exit mechanism integration
Stakeholder rights and regulatory compliance
Insurance Professionals and Service Providers, including but not limited to:
Token economic uncertainty
Limited performance history
Novel insurance professional work environment
Onboarding and Offboarding of Crypto and Fiat
Regulatory cross-border challenges
Technology Infrastructure Risks
Platform and security considerations beyond core protocol risks. Includes system uptime, data management, API integrations, and cybersecurity concerns specific to decentralized systems.
Platform Risks, including but not limited to:
Potential downtime
API integration failures or vulnerabilities
Open Source data challenges
Data storage vulnerabilities
Technology stack dependencies
Security Risks, including but not limited to:
Private key management
Smart contract access controls
DDoS vulnerabilities
Data breach potential
Third party vendor risks.
As a Digital Asset business, it is important that our customers, investors, and stakeholders understand the potential risks associated with the NIMBLR token, as well as with token economics and token distribution in general. These risks include, but are not limited to:
Token Valuation Risks
Price volatility and uncertainty
Lack of intrinsic value
Dependency on platform adoption
Market liquidity constraints
Impact of regulatory changes on value
Technical Token Risks
Smart contract vulnerabilities
Blockchain network failures
Token standard compliance issues
Wallet compatibility problems
Loss of private keys/access
Economic Model Risks
Tokenomics model failure
Supply/demand imbalances
Staking mechanism breakdown
Reward distribution errors
Governance token voting manipulation
Usage Restriction Risks
Transfer limitations
Geographic restrictions
KYC/AML compliance requirements
Regulatory status changes
Platform access restrictions
Insurance-Specific Token Risks
Claims payout capacity
Premium token volatility
Risk pool undercollateralization
Oracle manipulation for claims
Staking requirement changes
Platform Dependency Risks
Protocol upgrade impacts
Smart contract migration issues
Platform discontinuation effects
Integration failure with insurance operations
Cross-chain bridge failures
Custody and Control Risks
Token loss through hacks
Custodial wallet risks
Multi-signature control failures
Administrative key compromises
Smart contract access control breaches
Regulatory and Compliance Risks
Security classification changes
Trading restrictions
Regulatory reporting requirements
Cross-border transfer limitation
Tax treatment uncertainty
Market Operation Risks
Limited secondary market liquidity
Price manipulation
Front-running attacks
Flash loan exploits
Market maker withdrawal
Technology Infrastructure Risks
Node operator failures
Network congestion impacts
Gas price volatility
Chain reorganization effects
Consensus mechanism failures
To mitigate against these risks and to ensure a secure and compliant platform, Nimblr imposes certain rules specifically related to the Nimblr token, transferability and KYC, AML, ATF Requirements. These safeguards are not only required by the Bermuda Monetary Authority and in accordance with our Digital Asset Business license conditions, but such restrictions and limitations are for the security and benefit of our users and holders. These restrictions are:
Non-Transferability
NIMBLR tokens may not be transferred between holders
Secondary trading of NIMBLR tokens is prohibited
Tokens can only be used for their intended platform utility purposes
Permitted Token Activities
Staking in insurance and risk liquidity pools
Protocol governance participation
Insurance services participation
Direct platform-based utility functions
Enforcement Mechanisms
Smart contract controls preventing unauthorized transfers; such as the freezing of the asset and requiring pre-approval and KYC/AML for any transfer
Company based liquidity buyback provisions
Continuous compliance monitoring
Automatic restriction of non-compliant transactions
Account suspension for violation attempts
Holders acknowledge and agree that any attempt to transfer or trade NIMBLR tokens outside of explicitly permitted platform activities constitutes a material breach of terms and may result in immediate token forfeiture and account termination.
Conclusion
While the above risks are inherent to innovative insurance technologies, Nimblr endeavors to meet or exceed the regulatory requirements related to security, privacy, AML/ATF, and we commit to expending the necessary resources to ensure that users of the platform are aware of the risks that exist and are educated on the steps we have taken to mitigate these risks.
These disclosure statements are subject to change. Any changes to these disclosures will be made publicly available and our users and stakeholders will be notified of any such changes. All stakeholders should carefully consider all risks associated when engaging with our platform.
