PAL Token Shield: How it Works

With PAL Network’s launch of PAL Token Shield, we are now offering daily protection from the volatile market, our mutual insurance pool ensures that the community is able to cover themselves from token values going down

Here is an easy-to-follow step-by-step guide on how to get you started in protecting your assets in no time.

  1. PAL Token Shield operates in daily pools every 24 hours. The first 18 hours (00:01–18:00 GMT +8) of everyday, users can participate by purchasing protection. While the last 6 hours (18:00–23:59 GMT +8)will be used to calculate the final results of the token values.
  2. All you need to do is purchase protection from the token you think will go down in value and enter the amount of PAL. The more PAL you use to purchase protection, the greater your potential distribution of the pool if your token goes down in value.

Note: To purchase any spots, you must first deposit PAL tokens into the PAL wallet via MetaMask

Let’s Get Started

Step 1 — Go to PAL Token Shield

Click on [Get Protected] on the PAL Network homepage or visit

Step 2 — Connect MetaMask to your PAL Wallet

Click on the [Sign In] button at the top right corner. The MetaMask Chrome extension is required.

Step 3 — Make a deposit into your PAL Wallet

You will now see your PAL Wallet balance in the top right corner. Click on it and a drop-down will appear, click on [View Wallet]. When you are in your PAL Wallet, click on the [Deposit] button and enter the amount of PAL you wish to deposit.

Step 4 — Purchase protection

Head back to the PAL Token Shield page and select the token you wish to protect yourself from. You do not need to necessarily own that token. Also, enter the amount of PAL you wish to purchase protection for. Remember, the more PAL you use to purchase protection, the greater your potential distribution of the pool if your token goes down in value.

Step 5— Results

At the end of the pool, the results will be calculated. And the pool will be distributed accordingly (refer below to see how its distributed).

How is the Pool Distributed?

If the token you’ve purchased protection for, goes up in value:

  • You will receive 20% of the protection amount you’ve purchased
  • PAL Network will receive 5% in service fees
  • The remaining 75% will be distributed among users whose token value has gone down

If the token you’ve purchased protection for, goes down in value:

  • You will receive a share of the 75% pool above, proportionate to the amount of PAL you used to purchase protection


Example 1

At the start of a new pool, Mike purchases 1,000 PAL worth of protection in Token A and Jane purchases 2,000 PAL worth of protection in Token B.

The pool concludes at the end of the day (23:59 GMT) and ultimately, Token A has gone down in value and Token B has gone up in value.

As a result, Jane’s selected token has gone up in value and she receives a rebate of 20% x 2,000 PAL = 400 PAL. The pool is now 75% x 2,000 PAL = 1,500 PAL. Mike’s selected token has gone down in value. Since he holds the only qualifying spot in the round, he receives the entire pool and the cost of his purchase which totals 1,500 PAL + 1,000 PAL = 2,500 PAL.

Example 2

In the next pool, many people think that the trend will continue and more people join — Ultimately Token A decreases in value again and Token B increases in value again.

This time, Andrew has purchased 10,000 PAL protection in Token B. He receives a rebate of 20% x 10,000 PAL = 2,000 PAL. The pool is now 75% x 10,000 PAL = 7,500 PAL. Mike has purchased 2,000 PAL of protection and Jane has purchased 5,000 PAL of protection in Token A. The pool is split among the Mike and Jane, proportionate to the amount of PAL they spent. Mike receives (7,500 PAL x 2000 / 7000)+ 2,000 PAL = 4,124.86 PAL. Jane receives (7,500 PAL x 5000 / 7000) + 5,000 PAL)= 10,357.14 PAL.

All Set

And that’s it! You’re now all set to start using PAL Token Shield. If you’re still unsure or have any further questions, ask us on Telegram and we’ll be happy to help with your enquiry!

About PAL Network

PAL Network is a decentralised insurance protocol that uses data to bridge the gap between consumers and insurance providers by providing a new level of accessibility within the insurance ecosystem. The company also works with insurers to provide CryptoProtect insurance coverage for digital assets and smart contracts. PAL Network is a member of Singapore Fintech Association and ACCESS. PAL Network’s affiliate entity, PolicyPal Singapore, has an active user base of 50,000 for its app, which helps users to manage, buy and optimise their insurance policies.

Currently, PAL Network has partnerships with insurance companies, FWD and Ergo, to explore potential use cases of our decentralised insurance protocol together. Furthermore, we have also established collaborations with blockchain projects NEM, QTUM, Sentinel Protocol, MediBloc, Digix and to offer CryptoProtect and mainstream insurance products for the projects themselves, along with their respective communities.

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