Question 1

What is Nexus Mutual?

Accepted Answer

Nexus Mutual is the first crypto insurance alternative. Since 2019, it has protected more than $6.5 billion against smart contract hacks and other DeFi risks. With a track record of paying 100% of valid claims, Nexus Mutual has become the largest and most trusted partner for managing onchain risk for everyone from individuals to institutions.

Question 2

What risks does Nexus Mutual cover?

Accepted Answer

Nexus Mutual provides coverage against onchain and associated risks, including: Smart Contract Hacks Kidnap & Ransom for Crypto Protocol Failure Liquidation Failure Custody Failure Depeg Risk Governance Attacks Slashing Risk Transaction Failure Bespoke Risk

Question 3

How much does cover cost?

Accepted Answer

Cover starts from 0.12% per year and varies depending on the risk underwritten, protocols covered and duration of the protection. Larger and bespoke cover options are individually structured and priced.

Question 4

How many claims has Nexus Mutual paid?

Accepted Answer

Since 2019, Nexus Mutual has paid more than $18.5 million in claims with all claims data publicly verifiable onchain. The largest payouts to date include: FTX Halted Withdrawals (November 2022): $4.9 million+ TribeDAO / Rari Capital Fuse Market Hack (April 2022): $5 million+ Euler Finance Exploit (March 2023): ~$2.4 million

Question 5

How are claims assessed?

Accepted Answer

Claims are decided by the Claims Committee, three publicly known assessors, and each claim passes with a majority of accept votes. The voting window runs 72 hours and closes early once every assessor has voted. Approved payouts become redeemable after a 24-hour cooldown, and a denied claim can be resubmitted with additional evidence. Every vote is recorded onchain, and the full claims history is public.

Question 6

Do you offer large or bespoke cover for institutions?

Accepted Answer

Yes, Nexus Mutual provides large and bespoke cover solutions for institutional clients, including funds, family offices and protocol teams. These covers are individually structured and priced based on risk profile, cover amount and duration.

Question 7

I represent an institution active or planning to be in crypto. How do I speak with the team?

Accepted Answer

Institutional clients, including funds, asset managers, and protocols, can contact the Nexus Mutual team directly to discuss bespoke cover, integrations, or partnership opportunities.

Question 8

Where can I see active cover, capacity and sales data?

Accepted Answer

Nexus Mutual data is publicly available onchain. Key dashboards include: Capital Pool: https://dune.com/nexus_mutual/capital-pool-and-ownership Claims History: https://dune.com/nexus_mutual/claims Active Cover: https://dune.com/nexus_mutual/covers

Question 9

How is my cover backed?

Accepted Answer

All cover is backed by the Nexus Mutual Capital Pool and underlying Staking Pools. Any Nexus Mutual member can provide capital to a staking pool to help underwrite risk and earn part of the premium. In the event of a claims payout, staked capital is slashed to fund valid claims. Capital positions and pool data are transparently available onchain.

Question 10

What is NXM and what is its role?

Accepted Answer

NXM is the native token of the Nexus Mutual protocol. It serves three functions: membership (holding NXM grants membership in the mutual), staking (NXM is staked to underwrite risk and earn cover fees), and governance (NXM holders participate in protocol governance decisions). NXM is not a speculative asset; its intended utility is within the mutual’s operations. The NXM token contract is governed by the Ratcheting Automated Market Maker (RAMM) which facilities capital flows to and from the mutual’s Capital Pool.

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