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Compass Protection - FAQs

Tyler Cohoon
  • Updated

Compass Protection Plan

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Contents:

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What is Compass Protection?

Compass Protection covers the cost of your mining hardware investment up to its initial USD purchase price. This protects your mining hardware from accidental property damage caused by fire, theft, select water damage vents and accidental mishandling.

 

What will Compass Protection cover?

Compass Protection covers your mining hardware from accidental property damage caused by fire, theft, water damage and accidental mishandling. If one of these events occurs, the full USD replacement value cost will be issued to your bank account or Compass Wallet to withdraw or use as desired. Compass may offer hosted hardware of similar value if available and agreed upon by the customer.

 

What doesn't Compass Protection cover?

Compass Protection does not cover:

  • Nuclear Hazard - Nuclear reaction or radiation, or radioactive contamination, however caused; but if nuclear reaction or radiation, or radioactive contamination results in fire, we will pay for the loss or damage caused by that fire if the fire would be covered under this Coverage Form.
  • War and Military Action -
    • Warlike action by a military force
    • Insurrection, rebellion, revolution, usurped power, or action taken by governmental authority in hindering or defending against any of these
  • Chemical, Biological, Bio-Chemical and Electromagnetic Hazard - Any actual or threatened act involving a chemical, biological, bio-chemical, or electromagnetic weapon, device, agent, or material when used in an intentionally hostile manner.
  • Breakdown - Electrical, mechanical, refrigeration or heating breakdown or failure; artificially generated current creating a short circuit or other electrical disturbance; system or operational crash; rupture, explosion, bursting caused by centrifugal force or steam; but if any such cause of loss results in fire, we will pay for the loss or damage caused by that fire if the fire would be covered under this Coverage Form.
  • Governmental Action - Any fines, penalties or expenses imposed by any government agency for any causes.
  • Insects, vermin, rodents, or other animals.
  • Dryness, dampness, temperature change, mold, fungus, rot, cold or heat.
  • Flood
  • Sewer Water Backups
  • Wear and Tear occurred throughout normal operation of machine
  • Earth Movement

 

How long will I be covered for?

When you purchase coverage for your miners, coverage beings immediately and will be in effect until the annual anniversary of the miners start mining date. Customers will have the ability to renew the coverage for an annual term at that time.

Example: If your miner was turned on April 15th then you will be invoiced each year on April 15th Compass Protection renewal.

 

Why should I get Compass Protection coverage?

Compass Protection offers risk management in turbulent times, which translates into peace of mind for your capital and your mining rewards. Uncertainty is part of life, but having protection for your investment provides a hedge you can depend on. Bitcoiners value anti-fragility. It is recommended you have insurance or protection on your machines, and Compass Protection is a cost viable option that can provide coverage for your machine.

 

How will I get Compass Protection Coverage?

If your miners are eligible for coverage, you will be notified through your dashboard. Interested parties will receive a detailed quote for review which will include a link to purchase the coverage offered.

We are continuously growing out this product across all of our facilities. You will be notified as more miners become eligible for Compass Protection Coverage.

 

Why was I not invited to purchase coverage?

In the first phase of this rollout, we will be prioritizing customers who want to protect all their eligible miners. If you did not get an invite in the first cohort, don’t worry, Compass Protection will be expanded to all customers in the coming months.

 

What deems a miner eligible for Compass Protection?

Miner eligibility depends on the facility it's hosted in. In order to better serve our customers and ensure we can meet the initial demand, Compass Protection will be launched in select locations. The product will be available at all locations in the future.

 

How much will it cost to purchase coverage?

Cost of coverage is calculated based on the purchase price of the miner and the number of days left in the hosting term contract. The higher the miner purchase price the higher the coverage and premium will be.

Example: Customer buys an ASIC for $6,000 with 9 months left on their hosting contract. Customer will pay between $135 and $180 for this protection plan coverage for the remaining 9 months on their hosting contract. This cost is based on the following:

  1. Hosting Facility
  2. ASIC Model
  3. Time left on the contract
  4. Upfront capital spend

 

How will billing work?

The Compass Protection coverage period is based on the hosting contract, however coverage is paid on an annual basis. Customers with less than 1 year left on their hosting contract will receive one bill at a prorated rate (e.g. 8 months worth of coverage). 

For example: Customer A has 4 months remaining on their hosting contract. Customer A will first receive a bill for 4 months worth of coverage. This is to ensure that Compass Protection renewal aligns with your hosting contract.

 

How will I submit a claim?

For instances where multiple customers are affected, claims will be processed automatically by Compass. In individual cases, you can submit a claim inquiry via email at claims@compassmining.io. 

 

What will happen when I submit a claim?

Claims are reviewed and processed by our finance team. Customers will receive the full USD replacement value issued to your bank account or Compass Wallet to withdraw or use as desired. Compass may offer hosted hardware of similar value if available and agreed upon by the customer.

Funds deposited to the Compass Wallet can be used as the customer sees fit; withdraw the funds into an external account, convert them into BTC, or use it to purchase another miner from Compass or the Marketplace.

 

How long will it take to settle a claim?

Claims will be settled as soon as possible. Most claims will settle within 10 business days. In large volume cases, claims will settle within a maximum of 60 days.

 

Will I need to be compass verified?

To receive payout for your claim you will need to go through a verification process. This can be done using Compass Verification or via manual verification. Manual verification details will be sorted out with our finance team and you will be contacted accordingly in the event of a claim payout that is owed to you.

 

What happens if my machine has to change facilities?

Occasionally, miners may have to be moved to different facilities. If your machine moves to a facility where Compass Protection is eligible, your miner will be protected and your Protection term will continue at the new facility. If the new facility is not eligible for Compass Protection, you will be informed and reimbursed the prorated amount of the rest of your Protection term.


What happens if I sell my machine on the marketplace?

For our initial launch of Compass Protection, you will not be able to transfer coverage. If you purchased Compass Protection for a miner and then sell that miner on the marketplace, the Protection coverage will not transfer to the buyer. Compass Protection is paid up front and you will not be prorated for the remaining coverage period. In the near future Compass customers will be able to transfer Protection coverage of any miners they list on the marketplace to the new buyer, and potential new buyers will be able to identify miners on the marketplace that have Protection coverage.

 

Additional Questions.

If you have additional questions that are not covered in this FAQs document, feel free to reach out at product@compassmining.io and we will get back to you!