Capacity Limits
The risk mitigation factors that determine available cover
The mutual places capacity limits on the amount of cover that is available on specific risks. These exist to protect the mutual as a whole from being too exposed to any single risk it takes on. The are two limits, a Specific Risk Limit based on the amount of staking on a particular risk and a Global Capacity Limit based on the overall capital resources of the mutual. The lower of the two limits applies in each case.
Capacity on any particular risk is limited by the amount of staking on that risk. If there is no staking, the mutual cannot offer any cover.
Specific Risk Limit is equal to :
capacity factor x net_staked_NXMnet_staked_NXM as per the pricing section above
Members passed Proposal #149 and increased the capacity factor from 1x to 2x for all platforms unless defined otherwise in the list below.
Protocol | Factor |
Aave V1 | 4 |
Argent | 4 |
Balancer | 4 |
Compound V2 | 4 |
Curve All Pools (incl staking) | 4 |
Gnosis Multi-sig | 4 |
Gnosis Safe | 4 |
MakerDAO MCD | 4 |
RenVM | 4 |
Set Protocol V1 | 4 |
Synthetix | 4 |
Tornado Cash | 4 |
UMA | 4 |
Uniswap v1 | 4 |
Uniswap V2 | 4 |
Yearn Finance (all vaults) | 4 |
This limit is based on the financial resources of the mutual and is there to ensure the mutual is not overly exposed to any particular risk, regardless of how much is staked:
Global Capacity Limit = MCReth x 20%where:
MCReth is the Minimum Capital Requirement in ETH terms.Last modified 3mo ago