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FAQ

Basics​

What is Nexus Mutual?​

Nexus Mutual is a decentralized insurance alternative that allows members to join, purchase cover to protect themselves against a variety of risks, and more. The Nexus Mutual protocol is built on Ethereum and provides the infrastructure for members to buy cover, underwrite risk as NXM stakers, and participate in governance.

The Nexus Mutual DAO operates as a discretionary mutual - people can join, share risk, and enjoy the benefits of membership. Members coordinate with one another through the Nexus Mutual protocol.

Learn more in the Overview section.

What does "risk sharing" mean?​

All members and NXM holders collectively own the capital pool and its assets. By joining as a member and holding NXM, you are pooling capital and sharing risk with others.

When claims are paid, members who stake NXM can have their stake burned to facilitate claim payouts, which flow out from the capital pool. Because every one (1) NXM opens up two (2) NXM worth of capacity, 50% of a claim is paid by burning NXM staked used to underwrite the cover in question and 50% of a claim is socialized across all NXM holders.

For context: whenever someone purchases cover, 50% of the cover fee paid is distributed to the NXM stakers who underwrite the cover and 50% of the cover fee accrues to the capital that backs all NXM tokens. Whenever cover is sold, all NXM holders benefit but those underwriting active cover earn a greater share of rewards for taking on a larger share of the risk. In this way, NXM holders are sharing risk.

Learn more in the Protocol section.

Does Nexus Mutual offer "insurance"?​

Nexus Mutual cover is not a contract of insurance. Cover is provided on a discretionary basis with Nexus Mutual members having the final say on which claims are paid. Members are putting trust in the protocol's design and fraud protection mechanisms rather than an insurance company.

Nexus Mutual is a discretionary mutual: a mutual fund that provides discretionary cover, which is an insurance-like product that involves only a discretion, not a legal obligation, to pay out on the occurrence of a material loss.

For information on the Mutual's track record of paying claims, see the Claims History section of the documentation.

Membership​

How do I become a member?​

You can go to the Nexus Mutual app to begin the membership application process.

See the Membership page for more information.

Will I get a notification when the membership process has been completed?​

Yes, once your KYC has completed you will receive an email notification to the email you used to register as a member.

If more than 24 hours has passed and your membership still hasn't gone through, please reach out through the Nexus Mutual contact forum.

Cover Products and Listings​

What risks do you cover?​

Nexus Mutual offers different cover products to protect against different types of risk.

For a full list of Nexus Mutual's cover products, see the Cover Products page or search our available listings in the Nexus Mutual app.

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

Yes, you can. You need to buy cover using the your membership address (i.e., the Ethereum address you used to sign up for membership). You need to purchase cover with your membership address, but you can protect crypto assets you manage in other blockchain wallet addresses. If you suffer a loss of funds and need to file a claim, you will need to submit proof of loss, which differs for each cover product.

Can I buy cover for another person such as my spouse?​

No, you cannot buy cover for another person even if that person is your spouse. Someone can only buy cover for their crypto or deposits per the language in each product's cover wording. Anyone who joins as a Nexus Mutual member can buy cover for their crypto and/or deposits.

How do I get my protocol listed on Nexus Mutual?​

If you're interested in having your protocol reviewed for a potential listing in the Nexus Mutual user interface, you can use the following contact form to provide your request, which the Product & Risk team will review and determine if a listing is appropriate at this time.

Claims​

Have any claims been paid?​

To date, members have paid $18M+ to people who suffered a loss due to past exploits, technical failures, and halted withdrawals on centralised custodians.

To learn more, see the Claims History section of the documentation.

How do I know my claim will be paid?​

Nexus Mutual's claims process is battle-tested and has been used to review and approve $18M+ in claims to date.

Our Claim Assessment process is managed by the Claims Committee, a group of publicly known experts with an established record of assessing claims within the Mutual. Currently, Nexus Mutual's Claims Committee has three members:

  • Hugh Karp, Advisory Board Member. Hugh is Nexus Mutual's founder and brings a wealth of traditional insurance expertise along with half a decade of onchain risk expertise to the Claims Committee.
  • Roxana Danila, Advisory Board Member. Roxana is Nexus Mutual's CTO and brings engineering and onchain analysis expertise to the Claims Committee.
  • BraveNewDeFi, Head of Risk. BraveNewDeFi is Head of Risk and has been managing claims incident response since he joined Nexus Mutual in 2021. Brave brings his onchain risk and analysis expertise to the Claims Committee.

Every claim filed is reviewed by the Claims Committee, who provide claimants with help to calculate their losses and ensure all of the information needed is included before a claim is filed. To learn more about the Claims Assessment process, see the [/protocol/claims-assessment] section of the documentation.

When is loss of funds determined for a claim?​

Loss is determined at the time just before the loss event occurred. You can always confirm how loss is calculated by reviewing the cover wording for the cover you have purchased, as well.

See the Cover Products section for more information about loss.

How do I provide proof of loss?​

Proof of loss is different for each cover product. You can find information on proof of loss on each page within the Cover Products section.

How long does the Claim Assessment process take?​

From the time you submit your claim, it usually takes between three (3) and five (5) days for the Claims Committee to review, vote, and determine a claim's outcome.

Staking​

What does it mean to delegate my staked NXM?​

When you stake your NXM, you can grant a staking pool manager the ability to allocate and stake your NXM against different cover listings. You also delegate your voting power for governance to the staking pool manager.

Learn more in the Staking section.

What is a staking period?​

A staking period is the length of time you choose to lockup your staked NXM in a staking pool of your choosing. NXM needs to be locked up to ensure capital that's underwriting cover cannot exit a staking pool and leave active covers unbacked.

Learn more in the Staking section.

What are the risks of staking NXM?​

Your NXM can be burned to facilitate claim payouts if members who purchased cover from the staking pool file successful claims.

If a claim is filed and approved by claim assessors, then the staked NXM allocated to the relevant cover product is burned proportionally across all stakers.

Learn more in the Staking section.

Governance​

How can I get involved in Nexus Mutual governance?​

You can stay active and engaged on the Nexus Mutual governance forum and learn how to start a discussion or raise a proposal by reviewing the Governance section.

Does Nexus Mutual have a grants program?​

If you wish to contribute to the DAO by working on a single-purpose project, providing a short-term service, building tools for members, or other means, you can submit a grant-specific Nexus Mutual DAO Proposal.

How can I contribute to the DAO?​

There are a variety of ways to contribute to the Mutual and the DAO. Learn more about how the Nexus Mutual DAO operates and how you can contribute.

NXM Token​

Why do you need the NXM token?​

The NXM token is needed in order to bind together the internal economics of the Mutual, so that the protocol can:

  • Dynamically react to the prevailing conditions and capitalisation levels; and
  • Reward active members for participating in the day-to-day operations of the Mutual; and
  • Accrue value from cover fees, investment returns and NXM buybacks to all NXM holders.

When did the NXM token launch?​

Nexus Mutual and the NXM token were launched on 30 May 2019. You can read our We've Launched Medium post for details about the initial launch. You can check out the Nexus Mutual app as well.

Is NXM listed on any exchanges?​

The NXM token is not listed on exchanges and the Mutual does not expect to list NXM on exchanges in the future. Due to the nature of the token model and the requirement for tokens to belong to members only, any exchange listing would have to be bespoke.

NXM tokens can be redeemed directly from within the Nexus Mutual user interface for ETH.

Can I transfer NXM tokens?​

Yes, as long as the address being transferred to is also a Nexus Mutual member; the transaction will fail if this is not the case.

How do I sell my NXM tokens?​

If you are a member and want to sell your NXM tokens, you can head to the NXM page in the Nexus Mutual app, where you will be able to sell your NXM for ETH.