PsyMuRF Notes

  • International Risk-Based Capital standards Basel III and Solvency II serve as the foundation for the design and management of the PsyIRF insurance fund. While these standards are the baseline for the insurance industry in the world of Traditional Finance, these standards, particularly the capital restrictions imposed by the Tiered Capital Requirements, are impossible for a crypto-based insurance fund to meet. And given the early stage of development of the crypto market, there is, as of now, no well-established and widely accepted standard for grading capital holdings. That work is essential and some early progress is being made by Aave, Compound, BarnBridge and others. We are building on their work in order to approximate the Risk-Based Capital standards that are the norm in the traditional insurance industry.
    • Tons more work needs to be done here
    • Feels important to give a nod to traditional approaches. But highest priority is creating a trustworthy model for managing capital/risk, ensuring that the fund always has sufficient capital to pay expected claims.
  • We need some mechanism to provide/pay for administrative support to the Insurance Fund (and other startup/ongoing costs associated with running the Insurance Fund)

Wikipedia definition of DAO: "A decentralized autonomous organization (DAO), sometimes called a decentralized autonomous corporation (DAC),[a] is an organization represented by rules encoded as a computer program that is transparent, controlled by the organization members and not influenced by a central government. A DAO's financial transaction record and program rules are maintained on a blockchain. The precise legal status of this type of business organization is unclear."

Association: "uniting in a common purpose"

Two-tier token system:

Tier 1: Member tokens - full-PsyMuRF Mutual membership and voting rights

Tier 2: Non-member tokens. Owners of these tokens are NOT members of the mutual and do not have voting rights

(i) PsyMuRF tokens (symbol: SMRF) may be used

(1) by patients to pay therapists for services,

(2) by therapists to pay premiums or

(3) by PsyMuRF to pay claims.

NOTE: Claimants have the right to receive payment in PsyMuRF tokens or stablecoins (TBD)

(ii) SMRF tokens are available to all PsyMuRF community members, including:

(1) founders,

(2) funders,

(3) PsyIRF-insured therapists, facilitators and guides,

(4) PsyIRF patients,

(5) Insurance fund investors


Psychedelic therapists could buy coverage for (i) legal defense, (ii) loss of license/income, (iii) related costs associated with prosecution related to their work in the area of psychedelics, and (iv) patient suits related to adverse events.

To be eligible to buy coverage therapists would be required to follow a code of conduct and meet training thresholds in order to successfully file/win their claim.


PsyIRF would be funded by (i) premiums paid by practitioners, (ii) investors and (iii) donations by anyone who supports psychedelic therapy.


Claims would be processed by a board composed of experienced arbitrators and practitioners with relevant domain expertise. This board would review claims, make judgments and authorize payment of claims.