System Assurances,
F**k You.
Deterministic Wallet Coverage
for the Onchain Economy
SAFU is a smart contract protocol that pays out when your wallet gets drained. No committee. No vote. Same inputs, same output, every time. Use the sidebar to navigate.
Abstract
Every year, billions in crypto are drained from wallets through phishing, approval exploits, and key compromise. The protocols designed to cover these losses require a committee to vote on your claim. Your payout depends on whether strangers with governance tokens believe you.
SAFU removes the vote. The same transaction inputs always produce the same payout calculation. When a verified drain event occurs, a 7-day cooldown starts, then a 45-day payout stream begins. No committee. No quorum. No waiting room.
Stakers deposit 0.015 ETH to secure a period of wallet coverage. The pooled ETH will earn Lido staking yield as protocol revenue in the production vault. Stakers earn SAFU points during their lock period, convertible to SAFU tokens at network launch in Q1 2027.
This document describes how the protocol works, how the economics hold, and where it is heading.
The Problem
Wallet-level drain is the most consistent attack surface in crypto. Phishing, approval abuse, and key compromise collectively account for billions in annual losses. These are not smart contract failures. They are wallet-layer events, and they fall through every existing coverage category.
Existing protocols don't cover this
Nexus Mutual, InsurAce, and Sherlock cover smart contract bugs: protocol-level failures where code behaves unexpectedly. A wallet drain is not a code failure. None of these protocols pay out on it.
For the protocols that do attempt wallet-level coverage, every claim goes to a vote. Your payout depends on DAO participation rates you didn't choose. The result is slow, unpredictable, and discretionary.
The agent gap
AI agents managing capital on hot wallets cannot exercise human judgment. Coverage for these wallets is not optional. It is a runtime dependency, the same way gas is. No existing product serves this segment. SAFU builds the API that does.
What SAFU Is
SAFU is a deterministic verification layer for wallet-drain events. Not DeFi insurance. Not a mutual. Not a governance-governed claims pool.
The protocol runs a fraud scanner against every submitted transaction hash. The scanner scores the transaction for drain patterns: sweep completeness, receiver classification, automation signals. That score, combined with the staker's tier and policy terms, produces one output: an entitlement amount, or a rejection reason.
Same inputs. Same output. Every time. The payout calculation is deterministic. No vote can change it. No governance proposal can delay it.
What this means for AI agents
An agent submits a transaction hash to the SAFU Verify API and receives a signed payout decision programmatically. No human in the loop on either side. Coverage becomes a runtime call, not a claims process.
| Conventional coverage | SAFU |
|---|---|
| File a claim | Payout activates automatically |
| Human adjuster | Oracle + math |
| Governance vote | No vote |
| Waiting room | 45-day stream, starts in 7 days |
| Discretionary | Deterministic |
How It Works
A wallet stakes 0.015 ETH to enroll. Before enrollment, the fraud scanner classifies the wallet by tier based on its on-chain history. Tier determines the share of the pool's coverage cap the staker is eligible for.
| Tier | Max payout | Wallet profile |
|---|---|---|
| A | 80% of pool cap | Clean history, low risk signals |
| B | 70% of pool cap | Mixed history, moderate signals |
| C | 50% of pool cap | Higher risk signals detected |
The staker sets a beneficiary address at enrollment. All payouts go to the beneficiary, never to the staked wallet. This protects the payout address from the same attack that triggered the claim.
Claim flow
Security
SAFUPool v6 is deployed at:
| Audit | Result | Date |
|---|---|---|
| Hashlock AI Audit ↗ | 18 findings reviewed, all addressed or accepted | May 2026 |
| Halmos Symbolic Execution (a16z) | 10 / 10 properties, zero counterexamples | May 2026 |
| Internal security review | 0 critical · 0 high · 0 medium · 0 low | May 2026 |
| Forge test suite | 37 / 37 tests pass | May 2026 |
Verified by symbolic execution
- Claiming permanently forfeits your stake, enforced by the contract, not just policy
- Pool balance stays accurate when a claim is cancelled
- Once a claim is filed, the original stake cannot be withdrawn
- The two approval keys are always held by different addresses
- Contract ownership cannot be transferred to the co-approval address
- The contract never owes more than it holds in ETH
- Payouts above coverage limits are always blocked
- A cancelled claim can never release further payments
Oracle and wallet safety
The payout oracle is an off-chain signing key held in a hardware wallet, not on the server. All signed messages include the contract address and chain ID, preventing replay attacks. A 2-of-2 override mechanism (owner + co-signer, separate keys) handles disputes without bypassing rate limits.
Staking sends exactly 0.015 ETH to the pool. No token approvals. No spending permissions. The contract cannot access any other asset in your wallet, before, during, or after staking.
Economic Model
The staking pool is ETH-only. Claims are paid from this pool. The 2%/day outflow cap and 45-day vesting period ensure no single event can drain it.
The initial deployment is a test pool designed to stress-test the system under real conditions. Coverage caps are small by design. Production economics require a larger pool and higher stake amounts, scoped for Q3 2026.
Revenue streams
Why stake?
Stakers provide the pool capital that makes coverage possible. In return: wallet-drain protection for the duration of the lock, plus SAFU points earned linearly over the lock period. Points convert to SAFU tokens at network launch. Principal is returned at the end of the lock if no claim is filed.
SAFU Points and Token
No token exists today. No token is being offered. This section describes the intended design, subject to legal review before implementation.
How points work
Every staker earns SAFU points linearly over their lock period. Points are non-transferable. The longer you stake without claiming, the more you accumulate.
When a claim is filed, accumulated points are burned as a side effect. The payout flows normally. Stakers who complete their full lock without claiming retain all points and convert them to tokens at launch.
Tokens and payouts are mutually exclusive
A staker either files a claim and gets the payout (burning their points), or holds to full term and gets their tokens (principal returned). There is no path to collecting both. This removes the moral hazard present in most DeFi token designs.
What the token does
Why the token is not a security
Coverage is the primary product. The token is a byproduct of honest participation in that product, not an investment in a profit-sharing enterprise. You stake to get wallet protection. At launch, accumulated points convert to tokens that give you a voice in how the protocol runs.
There is no ICO, no presale, no token being sold. Tokens only reach wallets that provided coverage capacity and did not extract from the pool. Tokenomics, supply, and allocation are Q4 2026 work, subject to full legal review.
Roadmap
Legal
SAFU is not a financial product, insurance product, or investment contract. The protocol provides a deterministic verification service. Coverage depends on fraud scanner output and verification pipeline evaluation. No payout is guaranteed.
SAFU tokens, when issued, are utility tokens. They confer governance rights and access to protocol functions. They are not securities under any jurisdiction. This assertion does not constitute legal advice.
This whitepaper is for informational purposes only. Nothing in it constitutes a solicitation, offer, or commitment to enter any transaction.
Protocol operates under BUSL-1.1 license. Source: github.com/mrkanchwala/safu-protocol ↗
SAFU — System Assurances, F**k You. ·
safustaking.com ·
GitHub ↗ ·
Etherscan ↗
Version 0.1 — May 2026. Subject to revision.