How to open a protection policy
- Navigate to the dApp and ensure your wallet is connected.
- Select ‘BUMPER’ from the tab menu.
- Click the orange ‘PROTECT’ button to start the process.
- From the dropdown menu, select the asset you wish to open a position for (e.g. ETH, BTC etc).
- In the Protection Amount pane, decide how much of your available assets you want to protect, or click the Max button to choose all (note, you will need to keep some ETH in reserve to pay gas fees).
- In the next pane below, set a protection floor. This is the price that your protection engages.
- Now, in the next pane, choose a protection term. This is how long your position will be open for.
- You will see the required bond in the next pane below. This is the amount of BUMP tokens you must have in your wallet which will be bonded into the protocol. Your bond is returnable when you close your position.
- In the bottom pane, you will see the stats for your position. If you’re happy, click ‘NEXT’.
- Now you need to confirm your protection policy. Read through the details, and when you’re ready to proceed, tick the checkbox and then hit ‘CONFIRM’.
- Now approve the transaction in your web3 wallet, and then wait for it to be confirmed on the blockchain.
- Once completed, you’ll see a summary of your position and can set a reminder on your calendar for when your position ends.
There is a cost for protecting your crypto assets from downside volatility, and this is calculated throughout your term. See the section on premiums for more details.