Cozy Finance
Other · Underwriting
Cozy Finance (Cozy Protocol) lets users buy and sell parametric protection against protocol-specific triggers. Protection markets settle automatically when on-chain conditions fire — no token governs the core markets today.
Parametric protection markets for DeFi protocols.
Protocol TVL
$1.7M
Latest data · 15 min delay
Risks identified
- Smart Contract
Cozy is entirely smart-contract-based; a bug in the safety-module, trigger, or protection-market contracts could cause loss of supplier capital or failure to pay valid claims. Mitigated but not eliminated by multiple audits (Zellic, Cantina, Electisec) and Certora formal verification.
- Counterparty
Protection is only as good as the capital supplied by underwriters. If a safety module or market is under-collateralized relative to a loss, users receive only pro-rata payouts, so buyers bear the counterparty/capacity risk of insufficient reserves.
- Oracle
Payouts depend on trigger resolution. Triggers that rely on price feeds, external data, or automated conditions can misfire (false positive/negative) if the underlying oracle or data source is manipulated, delayed, or wrong.
- Governance
For non-automated markets, claim/trigger resolution can be delegated to a DAO or multisig chosen by the module creator. This introduces discretionary human/governance risk over whether and how much a valid claim is paid.
- Systemic
As DeFi-native cover, Cozy is exposed to correlated tail events: a large market-wide exploit or contagion could simultaneously trigger many modules and exhaust provider capital, and the protocol has no external insurer-of-last-resort backstop.