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Buying Cover

How do I purchase Cover?

Cover is available for purchase by members from the application interface using a Metamask account.
We are making the process as simple as possible:
  1. 1.
    Specify which smart contract address you want Cover for.
  2. 2.
    Specify the Cover Amount, currency (ETH or DAI) and Cover Period.
  3. 3.
    Generate a quote and make the transaction using Metamask.
  4. 4.
    You are now covered!
You can pay for cover using ETH, DAI or NXM.
If paying in ETH or DAI, the system will convert the contribution to NXM in the background, then immediately use that NXM to purchase cover.

I purchased cover but now I have a Cover Deposits section under My Holdings on the Home page. What does this mean?

When you purchase cover and pay the cover premium, 10% of the premium is reserved as NXM that may be used to file up to two claims. ‌
When your cover policy expires, the 10% reserved for claims filing can be withdrawn for up to 120 days after expiry for all cover types if no claims are filed for that policy.

Can I buy cover for assets in wallets other than my whitelisted address?

Yes, you can. You need to buy cover using the ETH address you used to sign up for membership (i.e. your whitelisted address). Cover is held by that address but you can protect assets in other wallets.
If you suffer a loss of funds and need to file a claim, you will need to submit Proof of Loss, which entails signing a transaction to prove ownership of the wallet address.
You can read more about the claims process in the How to File a Claim section.

If I buy several cover policies for assets deposited from one wallet, will I still be covered?

Yes, you will be covered if you buy several cover policies from your whitelisted account to cover assets deployed from one wallet and suffer a loss of funds.
Your loss would have to be at least 20% or greater for a Protocol Cover policy. Given that, you can submit Proof of Loss that shows your loss of funds along with the Claims ID. Claims Assessors will be able to see your loss and the Claims ID associated with your Proof of Loss for the submission.

If I buy one cover policy for assets deposited from several wallets, would I still be covered if I lost funds?

Yes, you will be covered if you buy one cover policy from your whitelisted account to cover assets deployed from multiple wallets and suffer a loss of funds.
Your aggregate loss would have to be at least 20% or greater for a Protocol Cover policy. Given that, you can submit Proof of Loss for each wallet that shows your loss of funds along with the Claim ID. Claims Assessors will be able to see your Proofs of Loss for your wallets and the Claims ID associated with your submission.

How do you price cover products?

The price is entirely driven by the amount of NXM staked by Risk Assessors against each protocol and custodian.
For more detailed information, see the Pricing section.

Why is this protocol’s yearly premium so high?

There are two possible answers:
1) New protocol listings on Nexus Mutual require Risk Assessors to stake NXM to open up cover availability and bring down the cost of cover. Protocols who want to bring down the cost of cover quickly can use a Shield Mining campaign to bootstrap NXM staking.
2) Risk Assessors stake NXM against protocols, custodians, and cover products they believe have bug-free code. If a Risk Assessor has confidence in a project and believes it is safe and trustworthy, then that member will stake NXM against the project. A high premium for a prolonged period can mean two things:
  • The project is not seen as safe, trustworthy, or the code is not perceived as being bug free; or
  • The demand for cover on said protocol is too low to justify the risk of staking NXM.
For more detailed information, see the Risk Assessment section.

What loss events are covered?

Loss events are defined in the cover wording for each cover product. In general, Nexus cover protects against loss of funds (i.e. loss of tokens), not loss of value; Yield Token Cover is the exception to this rule of thumb.
See the cover wording for defined loss events: Yield Token Cover Protocol Cover Custody Cover
For more detailed information, see the Types of Cover section.