If you believe your loss of funds is a qualified material loss, you can submit a claim, which will go through the mutual's Claims Assessment process.
Members who stake NXM and choose to act as Claims Assessors can participate in reviewing, discussing, and voting on claims.
Members acting as Claims Assessors are incentivised to act honestly; members are deterred from voting fraudulently. If it is determined that a member voted fraudulently in the claims process, then the Advisory Board has the power to burn the malicious Claims Assessor's staked NXM as a result.
Nexus Mutual takes Claims Assessment seriously.
Limit on Claims Filed per Cover Policy
When you want to submit a claim, be sure to review the cover wording for your policy to ensure the loss qualifies for a claims payout.
When you purchase your cover policy, 10% of NXM tokens from your premium are locked and reserved for the filing claims.
For each claim filed, 50% of the reserved NXM for filing a claim is staked during the Claims Assessment process.
If your claim is approved by Claims Assessors, you will receive a payout and the premium in staked NXM will be returned.
If your claim is denied by Claims Assessors, you will not receive a payout and the premium in staked NXM will be burned.
Each member only has two opportunities to file a claim for each cover policy they hold.
How to File a Claim
To file a claim, you can go to app.nexusmutual.io/home. On the landing page, you will see the following menu bar at the top:
Nexus Mutual landing page view
There you will see the Home menu with the following fields:
Menu for Nexus Holdings, Cover, Claims, and Membership
Click on My Covers and You will see your active and expired cover policies. The menu presents information by Cover ID, Project, Cover Amount, Cover Period, Premium, and Action.
Example of the My Covers menu with an Aave v2 Protocol Cover policy view
To file a claim, click Claim under the Action field.
Example: here are the Claim options for two cover policies, one active and one expired.
You can see the active cover has a bright green Claim field I can click on. The inactive cover policy has a greyed out Claim field; when I hover over the greyed out field, I get the message: "Cover has expired and is outside of the grace period!"
Now that you are in the right menu, click on Claim. Once you do, you will see the following menu:
Step #1: Incident Details Screen where members can provided off-chain proof of loss and/or other details.
In this interface, you can provide information related to your claim. The transaction signatures are executed in the next steps, but here you can write a description of the loss, provide screenshots of any information that may help Claims Assessors, provide Off-Chain Evidence, etc.
Once you have filled out the fields on this screen, click Continue and move on to the next step.
Step #2: Affected Addresses Screen where users can include transaction signatures
On this screen, you will sign a transaction from the affected address(es). You can use one of the following methods to prove you control the address(es) you are filing a claim for:
1) Sign a message from the affected address and submit through the Nexus interface as your proof of loss.
2) Make a 0 amount transaction to a specified address. If you are filing a claim from another address, you can send 0 ETH from your other wallet to your whitelisted address.
Using one of the two methods above is how a user demonstrates Proof of Loss.
Once you are finished with this step, click Continue.
Step #3: Address Where Loss of Funds Occurred
On this screen, you will sign a verification message from the address where you suffered a loss. For this example, I am submitting a claim from my non-whitelisted address for Aave v2 with a loss on the Polygon network.
If you were doing the same, you would select Polygon, as I have above, and click the Verify button.
Step #3: Message Signed, Connect Back to Whitelisted Address.
In my case, I signed the transaction and now I need to connected back to my whitelisted address. If you were submitting a claim for a loss that occurred in a wallet that is not your whitelisted address, you would follow the same process.
Step #3: Address(es) have been verified.
You have now verified the address from which you incurred a material loss of funds. You are set to move on to the next step. Click Submit Proof.
Step #3: Confirm Transaction
Once you click Submit Proof, you will need to sign and execute the proof transaction. When that is done, you will be directed to one more screen, which provides you with information on the Claims Assessment process. The Nexus Mutual interface wants to be sure you understand the guidelines for a Protocol Cover claims submission.
Step #4: A Portion of the Submit Claim screen.
Step #4: The full text presented on the Submit Claim screen.
To submit the claim, you need to read through the information provided and check Yes for both questions. Be sure to read through as a member only gets two opportunities to submit a claim. There is a link at the end of the text that will direct you to the Claims Assessment section if you want to review that information again before submitting your claim.
Once you select Yes for both fields, you will be able to file your claim. Click Submit Claim to finalise the process.
When the transaction is confirmed, you will be all set. Once your claim is filed, you will see it on your Dashboard in the Home menu on the landing page of the Nexus app.
Submitted Claims can be reviewed on the Home menu.
You can check the status of your claim on the My Claims tab. After submitting your claim, you will see the STATUS as Pending.
After a claim is submitted, Claims Assessors review the evidence and proof of loss you provide, discuss the claim, determine whether or not it satisfies the guidelines presented in the cover wording, and vote on the claim. The Claims Assessment process usually takes 72 hours.