Rari Capital Fuse Market Exploit (30/04/2022)
Details of this event are included below.
A total of 20 ETH and 5,008,000 DAI was paid out for Claims 110, 111, and 113. Other claims may still be submitted for this loss event.
After this exploit occurred, Claims Assessors discussed this loss event in the mutual's Discord server. Because Nexus Mutual is a discretionary mutual, members participate in the Claims Assessment process and review the validity of claims submitted after a loss event occurs.
Members reviewed the information available in the days after the exploit, while Rari Capital Protocol Cover holders waited for the 3-day cool-down period to pass before submitted claims. Claims Assessors discussed the event and determined the Rari Capital Fuse market exploit was covered under sections 1.1 of the Protocol Cover wording.
Subsection 1.1 includes re-entrancy attacks, which fall within the unintended uses of code clause.
Once the 3-day cool-down period had passed, the mutual released a statement with instructions on How to File a Claim, as well as information about the active cover policies and the Claims Assessment process. Within this announcement, there is a Google Sheet that contains Rari Capital active cover policies where information has been included about claims members voted to accept, deny, or claims that were not filed.
To date, two (2) claims have been filed and voted on by Claims Assessors. As stated in the section above, Claims Assessors had determined this was a covered event. Once it has been determined that an event is covered, Claims Assessors review the validity of claims to determine:
- Did the Cover Holder have active cover at the time of the exploit?
- Did the Cover Holder provide Proof of Loss?
- Did the Cover Holder lose 20% or more of the covered amount?
View of the Rari Capital claims from the Claims menu in the Nexus Mutual user interface
Claims Assessors reviewed and approved Claims 110, 111, and 113. The claims included proof of loss, which showed the affected addresses where the Cover Holders suffered a loss of 20% or greater. You can review the transaction related to this claim in the Google Sheet and the Nexus Mutual user interface in the Claims section.