Description

1 SewanRing Insurance

Creator-Backed Redemption Protection for Your SACK

When you create a SACK on Sewan.Trade, you are making a commitment:
That the underlying assets can be redeemed by the rightful SACK owner.

1 SewanRing Insurance strengthens that commitment.

What It Is

1 SewanRing Insurance is an optional protection layer that SACK creators can attach to their SACK.

If, for any reason, the creator is unable to redeem the SACK’s listed assets according to its terms, a reserved SewanRing is released to the current SACK owner.

It is a built-in accountability mechanism.

Not a promise.
A reserve.

How It Works

A creator lists a SACK.

The creator adds 1 SewanRing Insurance.

That SewanRing is locked in reserve.

If redemption fails under valid claim conditions, the reserved SewanRing transfers to the current SACK holder.

The insurance follows the SACK — whoever owns it at the time of a valid redemption failure receives the SewanRing.

Why It Exists

Sewan.Trade is peer-to-peer.

There is no centralized authority guaranteeing performance.
Trust is created through structure.

1 SewanRing Insurance:

Signals seriousness from the creator

Creates measurable downside for non-performance

Protects SACK holders from total loss of redemption value

Strengthens the integrity of the marketplace

It aligns incentives.

When a Claim Applies

A claim may apply when:

The creator cannot deliver the stated asset(s)

The redemption window is active

The SACK holder follows the defined redemption process

Clear documentation and on-chain recordkeeping determine eligibility.

What It Is Not

It is not asset replacement insurance.

It does not guarantee equivalent asset value.

It is not a speculative profit tool.

It is a predefined accountability reserve.

Who Should Add It

Creators who:

Want stronger buyer confidence

Are listing high-value or long-term redemption SACKs

Want their listings to stand out as structured and serious

Simple Structure. Clear Consequence.

1 SewanRing locked.
Released only if redemption fails.
Held in reserve to protect the current SACK owner.

Transparent.
Pre-committed.
On-chain accountable.