Insurance service providers

Insurance service providers vouch for dKargo participants in case they sign more contracts than the amount of tokens they staked. Also, insurance service providers ensure contract performance guarantee on behalf of participants. Participants can increase the number of contracts they can sign at the same time through insurance companies as they will provide contract performance guaranteed. The insurance service provider will receive tokens as premium.

Insurance service providers will provide compensation if the participant fails to fulfill a contract or if the freight is damaged. To ensure that insurance service providers can provide compensation, they too must stake a portion of their tokens. Insurance service providers are no exception to signing contracts proportionate to the number of tokens they staked. Insurance service providers can adjust the premiums for each participant according to the participant’s transaction history and maximize their revenue by doing so.

Insurance service providers play an important role in the platform's growth. As the platform's freight traffic increases, second movers will have to increase their initial capital investment to join the platform. However, this is a leading cause of discouraging second movers to join the platform and will become a major obstacle to the platform's growth. Insurance companies will help second movers to join the platform at a lower cost and help the platform's growth. dKargo won't be a platform for a select few early movers but will be available for all participants of the logistics industry to gain value.