Pass-Through Insurance Program - What's Covered vs. What's Not

Covered perils include: fire, lightning, windstorm, hail, explosion, theft (with evidence of forced entry), vandalism, riot, civil commotion, smoke, falling objects, weight of ice or snow, and water damage.

Excluded perils include: mechanical breakdown or equipment malfunction (hashboard failure, power supply failure, fan motor failure, chip failure), electrical surge other than lightning, cyberattack or ransomware, contamination/corrosion/mold/rust/dust, damage from temperature or humidity extremes (including cooling system failure), earthquake, flood or storm surge, wear and tear, business interruption, war or terrorism, and unexplained disappearance of equipment.

Digital assets are never covered. This includes mined cryptocurrency, tokens, NFTs, pool balances, private keys, and wallet credentials, regardless of where they are held.

Critical Rule: Coverage is determined by cause, not damage type:

• A fire that destroys a hashboard → covered (fire is a covered peril)
• A hashboard that fails on its own → not covered (mechanical breakdown is excluded)
• A component failure that causes a fire → the fire damage is covered; the component that initially failed is not

Important acknowledgment: The most common causes of mining equipment failure; mechanical breakdown, electrical malfunction, and normal wear are excluded perils. This Program is not a warranty or maintenance plan.