Insurance coverage

At Noon, we employ a three-layer insurance structure to protect user capital and deployed assets across both DeFi and traditional finance environments.

Each layer targets a distinct category of risk:

Layer	Coverage Type	Primary Risk Mitigated
1. DeFi Deployment Insurance	Nexus Mutual	Smart contract risk
2. Custodial Insurance	SIPC + Lloyd’s of London	Counterparty risk
3. Noon Insurance Fund	Internal fund	Strategy volatility

1. DeFi Deployment Insurance

Provider: Nexus Mutual Objective: Mitigate smart contract risk in DeFi deployments.

All Noon DeFi strategies are protected by on-chain insurance coverage provided by Nexus Mutual, Web3’s leading decentralised insurance protocol.

Current Coverage

• Morpho — DeFi Lending Strategy

• Pendle — PT Deployment Strategy

Verification

• Operations Wallet: 0x533a2019d0e0998D3bf558D0784CA49115B04686

• Example Transaction: Coverage purchase for Euler & Morpho

• Coverage Dashboard: Dune — Nexus Mutual Covers

Notes:

• Noon divides deployments across independent DeFi protocols with minimal code overlap to reduce correlated smart contract risk.

• Scale enables Noon to access institutional-grade coverage at reduced cost, enhancing protection without impacting yield.

2. Custodial Insurance

Partners: Dinari, Alpaca Objective: Mitigate counterparty risk for off-chain and tokenised traditional assets.

The majority of assets that reside outside of CeFi or DeFi — including U.S. Treasury Bills, CLOs, and similar holdings — are held via Dinari, who custody all assets with Alpaca, a regulated U.S. broker-dealer.

Protection Details

• SIPC coverage — standard protection for brokerage accounts

• Lloyd’s of London supplemental coverage — extends protection beyond SIPC limits

This ensures that the majority of off-chain or tokenised assets are protected with regulated insurance coverage comparable to institutional custodial standards.

3. Noon Insurance Fund

Objective: Absorb strategy-level volatility and cover non-insurable events.

The Noon Insurance Fund is a self-managed, platform-level safety net designed to enhance yield stability.

Mechanics

• 10% of gross yield from all strategies is allocated monthly to the fund

• Funds mature (“season”) for 3 months before distribution to staked $NOON ($sNOON) holders

• Used to smooth temporary volatility and cover residual risks not addressed by external insurance

For a detailed breakdown of yield flow and fund mechanics, see: Return Distribution & Insurance Fund

Risk Coverage Summary

Risk Category	Insurance Layer	Provider / Source	Coverage Scope
Smart Contract Risk	Layer 1	Nexus Mutual	DeFi protocol exploits, code vulnerabilities
Counterparty Risk	Layer 2	SIPC + Lloyd’s of London	Custodian insolvency or failure
Strategy Volatility	Layer 3	Noon Insurance Fund	Internal yield buffer for limited volatility events

Key Takeaways

• Multi-layer protection: protocol, custodial, and platform-level coverage

• On-chain verifiability: all DeFi insurance coverage is public and auditable

• Regulated counterparties: the majority of off-chain assets are custodied under licensed U.S. institutions

• Internal yield reserve: Noon allocates part of performance yield to protect user returns