Risk Assessors earn rewards when the associated cover is purchased (50% of cover sales go to Risk Assessors on a proportional basis with respect to their stake).Unstaking is subjected to a 30-day lock-time. The more NXM is staked for a cover product, the lower the cover price and the more capacity is available for purchase. Risk Assessors are Nexus Mutual members who stake NXM against protocols, custodians, and cover products they consider to be safe. Once a cover product is listed on Nexus Mutual, the cover price and capacity is determined by Risk Assessors. TVL (Total Value Locked) or AUM (Assets Under Management).Multiple criteria are taken into account for listing, including: Cover listing processĬover listing opportunities and requests from the community or external protocols/companies are evaluated by the Nexus Mutual team who collectively have insurance, blockchain, legal, business and security expertise. Cover fees and capacity are determined by community staking. Nexus Mutual uses an expert panel to determine which cover products to list. Claimants may submit a second claim for a given cover if unsatisfied with the initial assessment. It currently includes Nexus Mutual founder and CEO Hugh Karp, CTO Roxana Danila, Reis Melbardis, Nick Munoz-McDonald and Graeme Thurgood. The Advisory Board is currently made up of five members of the mutual and contains members of the founding team and other experts. This process is not automated nor based on voting results. The Nexus Mutual Advisory Board can deem a Claim Assessor's vote to be fraudulent. Who determines if a Claims Assessor’s vote is fraudulent? If a Claims Assessor's vote is deemed fraudulent their stake may be burned. Claims Assessors who vote against the consensus have their stake locked for 7 days.Claims Assessors who vote in line with the consensus receive a share from the associated fee pool - NXM tokens worth 20% of the original cover price - in proportion to the amount they staked.If the claim outcome is determined in the initial voting period: Who are the Claims Assessors?Īny Nexus Mutual member may become a Claims Assessor for a given claim by staking NXM during the initial voting period. If the threshold is not met, the result of the initial vote is kept. The final outcome is then determined by simple majority vote if the total value of NXM locked by voting members is at least 5 times the claim amount. If the total value staked by Claims Assessors is less than 5 times the claim amount or the voting consensus is less than 70%, then a second round of voting follows where all DAO members can participate by locking their NXM for 2 days. This initial voting period lasts at least 36 hours and either ends when the total value of NXM staked by Claims Assessors is over 10 times the claim amount or after 72 hours have passed.Īfter the claims assessment vote concludes, if the voting consensus is above 70% and the total value staked by Claims Assessors is more than 5 times the claim amount, the majority vote determines the claim result Immediately after a claim is submitted, Nexus Mutual Claims Assessors review the proof(s) of loss and vote to determine whether the claim is valid. The affected blockchain address(es), for which the claimant must prove ownership by signing a transaction.A description of the incident including any off-chain evidence to support the claim such as screenshots or public announcements.When submitting a claim, the claimant must provide: Claimants must submit incident details and stake 5% of the cover price in NXM tokens (taken from the 10% deposit locked at the time of cover purchase - the deposit is returned if no claim is made). Typically this offers protection against custodian exploits and/or hacks, fund mismanagement and account lock-ups (inability to access funds without prior notification from the custodian).Ĭlaims may be submitted 72 hours after a fund loss event (90 days for Custody Cover) and within 35 days of the cover period end (120 days for Custody Cover) using the Nexus Mutual dApp. Protection against losses resulting from the use of a centralized or custodial (CeFi) cryptocurrency product (e.g. Typically this offers broader protection than Protocol Cover by safeguarding against failures in a potential chain of protocols composed to generate yield. yvDAI, cUSDC) significantly diverging from its market value in a reference currency (e.g. Protection against losses resulting from the face value of a yield-bearing token (e.g. Protection against losses resulting from the use of a DeFi protocol such as smart contract exploits and/or hacks, economic design failure, attacks leveraging oracle data manipulation and governance attacks (malicious players gaining enough voting power to reshape protocol rules that leads to a loss of funds).
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