Insured vaults are special offline vaults where users can keep their private keys and are also secured by insurance coverages. The insurance policy on such vaults covers situations that could cause the loss of someone’s digital assets stored in the vault, such as theft, hacking, etc.
Insured vaults address the security problems that users face whenever they are storing private keys on online wallets or keeping cryptocurrency assets on centralized exchanges.
The premium paid for insured vaults corresponds to the amount of assets they need covered. And while these vaults are offline, users can continue to monitor their holdings through the blockchain explorer.