3F Mutual In-depth Tutorial

Hakka Finance
Published in
4 min readMar 8


How to start securing your crypto assets in the event of volatility

Buying Insurance

You can see your portfolio in the very first tab when you land on the 3F Mutual website.

  • Your Shares: Total shares you own.
  • Your Active Insurances: Your unexpired insurance.
  • Last Bought: The day you bought insurance last time.
  • Basis Price: The price of a single share, the initial value is set when 3F Mutual is deployed. Price may change depending on the amount of ETH received.


The total price is the base price multiplied by the insurance rate. Roughly speaking, the share price increases slightly as more and more shares are purchased. You can check the “Basis price” for the price of an individual share.

To buy insurance, the fee you need to pay is multiplied by a rate. Accurately, the rate is set to 100% per insured day with a 1% depreciation, and the longest period you can buy is 100 days. By the way, you can buy 0-day insurance with the base price, which gives you merely a share, with no insurance included.

In other words, you can get a discount if you buy longer insurance coverage.

bp stands for basis price, d is the insurance coverage length in a day

“A day of insurance” starts from the current time and ends sharply at 0:00 UTC (Coordinated Universal Time), regardless of your timezone. This means that the “time” is universal, the same for all applicants, to avoid tedious timezone conversions.

For example, if you buy 3-day insurance at 1:00 UTC, Sep. 3, it expires at 0:00 UTC, Sep. 6, effectively 71 hours in total. Notice that due to this nature, your insurance on the first day is subject to be incomplete.

For those who don’t know what UTC is, we set up a tiny clock on the 3F Mutual main page that reads the client’s local time for reference.

Ether Distribution

Your insurance-buying payments are distributed as follows:

Referrals and Referral links

Registering a name (i.e., becoming an insurance agent) unlocks a set of links for advisory. If an applicant clicks your link, you are logged as their referrer. When they further purchase insurance, you’ll receive a special amount of money called referral income.

There are three types of referral links: by wallet, by name, and by serial number (anonymous link), whose function is the same.

You can choose which best suit for your needs. Notice that a referrer's information is stored in the browser, and is overwritten when entering the other referrer’s link.

Tip: You may use your own referral link, and you will get the referral bonus as well.

Insurance Agent System

The referral bonus is calculated as follows:

  1. If there is no referrer (insurance agent), no bonus is spared from the fund.
  2. Otherwise, the referrer receives a fixed part of the fund, according to the referrer’s level (ranging from 1 to 10).

Upon registration, you start at Level 1. Your referral income is accumulated within each round, unaffected by withdrawals.

If your referral income meets the requirement of higher levels, you can send an “upgrade” request and hop into the next level. The upgrade button looks like this below:

The maximum level is 10

The Vault

Your dividends and referral incomes do not directly go to your wallet.

Instead, they are kept in the vault. It is a safe place for your money so that you can withdraw it whenever you want.

When the round ends, you can also claim your compensation there.

When MakerDAO ESM has been triggered

where IU = insurance units

The contract will remain in place until you collect your money. Then, get ready for the next round!


  • Applicant: You. The player of the game. Precisely, An Ethereum address was interacting with our contracts.
  • Agent: An applicant who registers one or more names. When one becomes an agent, one can use the referral links to invite other applicants.
  • Share: The tickets for the game. An applicant with shares receives dividends from other applicants when they also buy a share. Unlike insurance, they don’t expire upon purchase.
  • Pool: Asset stored in the contract for compensation. Will only be used to pay the applicant.
  • Emergency Shutdown: DAI Stablecoin System totally shutdowns. A one-time event that only takes place when Maker governance crashes.



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