To submit a claim, the Cover Holder needs to stake 5% of the NXM tokens locked in at the time of buying cover, like a deposit. With 10% of NXM tokens locked in at cover purchase, the Cover Holder can submit the claim for assessment two times. The staked NXM serves as a deterrent against fraudulent claims. If a claim is successful, the stake is returned to the member. If it is denied, the stake is forfeited.