GRE - World’s first blockchain based risk exchange marketplace

Posted by BITCOINTALKED


Global Risk Exchange is a blockchain based, decentralized global hazard contract market and public chain, with the motive of supporting individuals, groups and corporations to freely hedge, transfer and alternate their risks. GRE completely reconstructed regular hazard management industry(insurance and spinoff markets) in a decentralized way, and will come to be the underlying working system to assist insurance and derivative transactions in the technology of blockchain.


First of all, GRE democratize the creation of danger administration tools the use of blockchain based smart contract and orcales, enabling any folks and establishments who has hazard administration wishes to create, change and shift risks to others who are willing to take on

those dangers on the blockchain. It’s a platform the place risk management policies and transactions are driven via real demands, the place individualized and fragmented danger coverages are made possible, and insurance plan protections are made agile.


Secondly, GRE leverages a blockchain based totally decentralized alternate to help individuals in the risk management contract: insured(who pay for top class and sell risks), insurer(who get hold of top rate and take on other people's risks) and contract designer(who measures individual risks and format the contract), transact and profit from their very own facts and appreciation of risks. The market fee of the risk contract represents the market consensus and the wisdom of the crowd, which is the great size of the danger at the moment.


Thirdly, GRE allows a a good deal larger base of insurance plan capability providers different than traditional insurance businesses and reinsurance companies, which are centralized, tightly regulated and capital intensive. Those new capacity vendors can bring extra liquidity and data to GRE platform and can profit from GRE via taking on a number of types of risks they understand, whilst making the complete chance trade market more efficient and liquid by means of bringing down the entry barrier for both insured and insurer, maximizing liquidity and statistics flow.


GRE goals to construct the blockchain infrastructure and buying and selling platform for danger management industry in the blockchain pushed world, with the aid of imparting a public chain, a quintessential protocol for the introduction of danger events, pricing, trading, records collection, and verdict. It will enable folks and institutions round the globe to gain threat and return equilibrium.


problems in the Traditional Insurance Market



Centralized Product Design and Risk Pricing Leading to Product Homogenization Traditional insurance plan products are designed, actuarial priced and soled in a centralized way. The homogeneous product graph should now not meet the diversified hazard administration needs of the people; threat pricing for the insurance products are totally relied on the actuarial model and lacks extra efficient measurement equipment and market; sales in insurance organizations are notably based on channels. Because of the homogeneous product design, insurance plan corporations regularly lift out vicious fee competition, resulting in the waste of social and financial resources.




High Sales Channel Cost and Low Cash Efficiency The standard model of licensed insurance plan business depend very a lot on middleman channels and a pyramidal corporate shape to keep control, ensuing in high insurance plan dealer groups expenses and working expenses. All these charges will end result in excessive premium prices for customers, while small and medium-sized insurance plan corporations suffers from low profits or even giant losses due to lack of scale and big overheads.




Low Operating Efficiency The organizational shape of insurance plan corporations is massive and bloated, its choice making mechanism cannot preserve up with the ever altering market, the universal operation and innovation capability is low, and the bureaucracy is serious.




User Privacy Protection Traditional insurance plan sales system requires insurants to furnish a large variety of personal information, such as ID cards and other touchy non-public information and is centrally saved in the insurance plan company's database, there is a rather massive hazard of statistics leakage and insider unlawful use. A lot of user's non-public facts is acquired by way of inside personnel and sold for profits.


Misleading Policy Sales and Insurance Fraud In the path of insurance policy sales, insurance plan salespeople often deliberately conceal contract phrases or even deceive policyholders. Policyholders also conceal their real state of affairs in order to attain greater favorable coverage ratio or decrease premiums. Claim fraud additionally manifest due to the fact of the uneven statistics between the insurance plan groups and policy holders.



Moral Hazard Buying insurance might also trade the policyholder's threat preference, ensuing in behavior that some insurers do no longer desire to see, for example, automobile insurance plan coverage holders may alternatively be extra laissez-faire and careless about their using behavior. two No practical mechanism in the standard insurance plan market is in area to solve such moral hazard problem.


Problems in the Traditional Financial Derivative Market


The global financial crisis of 2008 exposed a wide variety of problems in derivatives markets round the world, for example, the massive and uncounted measurement of OTC by-product market, over reliance on inner mathematical models for danger pricing and do now not reflect the authentic buying and selling and liquidity stipulations of the market, excessive counterparty threat in market turmoil and the drying up of market liquidity due to intense market panic.


Uncounted OTC Trading Volume and Opaque Risk Measurement Most of the derivatives market depends on the inner model of financial institutions to calculate e book fee and danger capital requirement, which leads to the serious distortion of danger size and hides large risks on the stability sheet of the institutions.


Counter-party Risk and Credit Risk OTC spinoff market depends closely on counter-party's capacity to fulfill its responsibilities and when bank run on the shadow banking device passed off in 08's financial crisis, Lehman Brothers failed to meet its price responsibilities and went bankrupt. Because Lehman Brothers played a central clearing position and biggest market maker in the CDS market, the total market grew to be a whole chaos because no one should ever make the market again.


Market Panic Leading to Liquidity Crunch When markets are in a nation of panic, aversion to hazard leads to the depletion of liquidity, developing a vicious circle, growing hazard publicity and growing market volatility. The foremost cause for market panic is that no mechanism ought to make sure that the counterparty's ablity to make payment and meet obligations of spinoff contracts. Credit scores became a shaggy dog story at that time and felony lawsuits took too long.



TOKEN CONCEPT


All hazard administration contract transactions on the GRE platform use RISK token as transaction intermediary, and the contract of the contracts will use RISK as well.

Users in GRE platform will pay transaction expenses the use of RISK token.

Any company or person can create a risk administration contract on GRE platform after comunity evaluation and attain a transation extent based rewards.

The neighborhood will reward developers with RISK token primarily based on their code contribution.

All people and corporations are able to share contracts on GRE platform and appeal to new customers to exchange risk mangement contracts and they will receive a reward from transaction rate collected from the new customers they invite.

Exchange dealers on GRE platform can RISK as collateral to problem market pegged tokens, such as GRE.USD or GRE.CNY. This mechanism is comparable to the BTS and BITUSD in the Bitshares ecosyetem.


The Insured


This group of users are the individuals and corporations in the real world who want to buy risk management contract(provide premiums) to hedge their risks


Contract Designer


Provide professional risk management expertise for GRE community and can publish risk management contracts after community review and earn fees based on transaction fees collected from trading this contract.

Insurer


This group of users are usually insurance and reinsurance companies and insurance-linked securities investors. They earn premiums from the risk management contract and take the risk transferred to them


ROADMAP




Token Information Read on the whitepaper 




TEAM MANAGEMENT