The main features of insurance
Since the sphere of hype is quite risky financially, each investor tries to secure and protect his investments as much as possible. Actually, one of these methods is insurance of deposits in HYIPs.
Even if we consider standard insurance at banks or other financial institutions, you can find many pitfalls. And this despite the fact that all conditions are fixed by contracts.
Is there any benefit from deposit insurance? Of course! And first of all, it is beneficial for the hype admins. Yes, at any time they can promise absolute protection of each contribution (up to 100%), but at the same time, after a couple of weeks of work, get in touch and calmly leave the money.
Large partners can offer deposit insurance services, for example, professional investors in hype or owners of thematic resources, for example, monitoring. As intermediaries, they open a special account and store funds there for insurance payments. But what are the conditions there?
Insurance Payment Terms
The person who provides such services can really insure the contribution. But at the same time, he offers quite complex and stringent conditions, and in case of violation they may well void the insurance. Such conditions may include the complete absence of a refback, certain investment plans, the publication of positive reviews about a hype project, insurance of a minimum deposit amount, and others.
At the same time, there is an option that you will observe all insurance conditions for a whole month (or even more), and when you close the project, you will simply stay with your money. However, this is still a fairly good outcome of events, because there are a number of other, more negative options.
Increasingly, there are scammers in the field of hype who offer not-so-clear conditions for insurance payments. For example, an insurer may have a total of $ 500 in insurance compensation. Investors who are confident in the complete safety of their funds (they still insured them!) Make deposits worth tens of thousands of dollars, in which case relying on insurance. When an insured event occurs, the insurer distributes only the amount in his hands, namely $ 500. Can you imagine? The investor made a deposit of $ 1,500, and then received insurance of $ 50, since it is divided into all.
There is a more classic example. A person gradually builds up a positive reputation for himself by offering investors insurance. Indeed, for some time he provides loyal conditions and pays the full amount of insurance payments. Gradually gaining momentum, he significantly increases the amount, opens large insurance and, having waited for the receipt of money, safely leaves in English. It is noteworthy that this insurer may also be the hype admin, who in addition will take away the entire cash desk of the project.
Should I use insurance
Considering that 80% -90% of insurance payments are fictitious, we recommend using it only in special cases. And, of course, you should not immediately believe every insurer who says that he only has reliable insurance payments on deposits in HYIPs. Want to try? Try, but only for relatively small amounts, and only after analyzing the project and monitoring the insurer itself.