What is an HYIP Insurance fund

30 Nov 2019 by William

If you look around on other HYIP monitors you might find the term HYIP Insurance. In this article I will explain what this insurance is exactly.

HYIP insurance

HYIPs pay monitors

HYIP programs want investors. To attract investors the HYIP owners pay monitors a listing fee to be shown on the monitor.

Now, every HYIP program wants to stand out from the competition, that is why some monitors allow the HYIP owner to buy an insurance fund.

When the HYIP becomes a scam, every user that invested as a referral of the monitor that has an insurance fund can make a claim on the insurance fund. The monitor will try to repay everybody from the insurance fund until the fund runs out.

If you want to learn more about HYIP monitors check out this post I wrote

Why would an HYIP owner pay for this?

The insurance fund is directly payed by the HYIP owner. When the owner pays for this fund, he is basically gambling that there will come in more investments than the total of the insurance fund.

So an insurance fund can be a nice extra safety feature for your investment, but remember you can still lose your money!

Never invest what you cannot afford to lose :)