# Nexus Mutual Documentation > Nexus Mutual is an onchain discretionary mutual on Ethereum. Members pool capital, buy cover against onchain and real world risks, underwrite that risk by staking NXM, and decide claims and protocol changes through governance. It is a mutual rather than an insurer: cover is discretionary and members share the risk with each other. These docs describe the protocol, the cover products, how claims are assessed, and how to integrate. Contract pages and protocol figures are checked against the deployed contracts on every pull request, so the numbers here reflect mainnet. ## Start here - [Getting Started](https://docs.nexusmutual.io/): Nexus Mutual is an onchain discretionary mutual. ## Overview - [Overview](https://docs.nexusmutual.io/overview/): Nexus Mutual is a decentralized insurance alternative that allows members to join and share risk. - [Membership](https://docs.nexusmutual.io/overview/membership): The Nexus Mutual DAO operates as a discretionary mutual where people are required to join as members before they can interact with the protocol or contribute within the DAO. ### Cover Products - [Cover Products](https://docs.nexusmutual.io/overview/cover-products/): Members buy cover against a specific risk, for a chosen amount and period. - [Cover wordings](https://docs.nexusmutual.io/overview/cover-products/cover-wordings): The cover wording for every Nexus Mutual product, taken from what the protocol records. - [Real World Risk](https://docs.nexusmutual.io/overview/cover-products/real-world-risk): The Nexus Mutual protocol provides the infrastructure for members to build risk management businesses. ### Claims History - [Claims History](https://docs.nexusmutual.io/overview/claims-history/): Because Nexus Mutual is a discretionary mutual, the cover products members purchase are not the same as traditional insurance policies. - [bZx hack | February 2020](https://docs.nexusmutual.io/overview/claims-history/bzx-2020): There is a full post-mortem of this loss event and the claim payouts in the bZx flash loan event Medium post. - [Yearn yDAI Hack | February 2021](https://docs.nexusmutual.io/overview/claims-history/yearn-2021): A total of $2,317,776.72 was paid out to Yearn Finance Smart Contract Cover holders. - [CREAM V1 Economic Exploit | October 2021](https://docs.nexusmutual.io/overview/claims-history/cream-2021): There is a full post-mortem of this loss event and the claim payouts in the Paying claims for the CREAM V1 exploit Medium post. - [TribeDAO, Rari Capital Fuse Market Hack | April 2022](https://docs.nexusmutual.io/overview/claims-history/rari-fuse-2022): A total of $5,089,889.24 was paid out for Claims V1 #110, #111, and #113. - [Perpetual Protocol v1 Economic Design Failure | May 2022](https://docs.nexusmutual.io/overview/claims-history/perpetual-2022): A total of $377,147.19 was paid out for Claim V1 #118 and Claim V1 #119. - [Hodlnaut Halted Withdrawals | August 2022](https://docs.nexusmutual.io/overview/claims-history/hodlnaut-2022): A total of $1,113,211.17 was paid out for Claims V1 #127, #128, #129, #130, #131, #132, #133, #134, #135, #136, #137, #138, #140, #141, #143, #144, #145, #147, and #151. - [FTX Halted Withdrawals | November 2022](https://docs.nexusmutual.io/overview/claims-history/ftx): A total of $4,924,887.90 was paid out for Claims V1 #156, #157, #158, #159, #160, #161, #162, #163, #164, #165, #166, #167, #168, #169, #170, #171, #172, #173, #176, #178, V2 #12, V2 #14, V2 #19, and V2 #20. - [BlockFi Halted Withdrawals | November 2022](https://docs.nexusmutual.io/overview/claims-history/blockfi): A total of $30,590.64 was paid out for Claims V1 #174 and #177. - [Euler Finance Exploit | March 2023](https://docs.nexusmutual.io/overview/claims-history/euler): A total of $2,389,227.88 was paid out for Euler Finance Protocol Cover Claims V2 #0, #2, #3, #4, #5, #6, #7, #8, and #11. ## Using Nexus Mutual - [Using Nexus Mutual](https://docs.nexusmutual.io/using/): How to buy cover, stake NXM, and file a claim. - [Buy cover](https://docs.nexusmutual.io/using/buy-cover): Cover protects a position against a defined risk for a set amount and period. - [Stake NXM](https://docs.nexusmutual.io/using/stake): Staking NXM backs cover on chosen listings. - [File a claim](https://docs.nexusmutual.io/using/file-a-claim): A claim is filed against cover you hold, in the Nexus Mutual app. ## The Nexus Mutual Protocol - [The Nexus Mutual Protocol](https://docs.nexusmutual.io/protocol/): Nexus Mutual is a decentralized insurance alternative that allows people to join as members and share risk with others. - [Cover](https://docs.nexusmutual.io/protocol/cover): Members can buy cover products to protect against any of the supported risks. - [Pricing](https://docs.nexusmutual.io/protocol/pricing): The protocol uses two approaches to pricing: Dynamic pricing for public listings with variable pricing Fixed pricing for select public listings and private listings with a defined minimum price set by the Advisory Board to prevent a race to the bottom scenario - [Capacity](https://docs.nexusmutual.io/protocol/capacity): Staking pool managers allocate staked NXM to individual listings to create available capacity, which is the amount of cover that can be sold over a given period of time for a given listing. - [Claim Assessment](https://docs.nexusmutual.io/protocol/claims-assessment): When you buy cover to protect yourself against risk and suffer a loss, you can submit a claim in the Nexus Mutual app. ### NXM Token - [NXM Token](https://docs.nexusmutual.io/protocol/nxm-token/): The NXM token is a governance and utility token backed by crypto assets held in the capital pool contract. - [Token Model](https://docs.nexusmutual.io/protocol/nxm-token/token-model): The Nexus Mutual protocol has a mechanism that allows members to freely mint and redeem NXM and ensures all claims can be confidently paid should a major loss event occur. - [History of Capitalisation Controls](https://docs.nexusmutual.io/protocol/nxm-token/history-capitalisation-controls): The following information below is the documentation that outlined how the original bonding curve worked; how the NXM token was priced; certain bonding curve parameters; how the Minimum Capital Requirement (MCR) was previously implemented; and the history of the MCR Floor. ### Capital Pool - [Capital Pool](https://docs.nexusmutual.io/protocol/capital-pool/): The Capital Pool is jointly owned by all Nexus Mutual members. - [Investments](https://docs.nexusmutual.io/protocol/capital-pool/investments): Any investment allocations are decided by members through the Mutual's governance process using the Investment Proposal Template outlined on the governance forum. - [Minimum Capital Requirement](https://docs.nexusmutual.io/protocol/capital-pool/mcr): The Minimum Capital Requirement (MCR) is an important component of the entire Nexus Mutual protocol. ### Staking - [Staking](https://docs.nexusmutual.io/protocol/staking/): Staking plays a critical role in the protocol, as allocating staked NXM against cover products opens up available capacity, so other members can purchase cover. - [Staking pools](https://docs.nexusmutual.io/protocol/staking/staking-pools): Risk is assessed and managed in individual staking pools. ## Resources - [Resources](https://docs.nexusmutual.io/resources/): Audit reports, the FAQ, and a glossary of the terms used across these docs. - [Audits and Security](https://docs.nexusmutual.io/resources/audits-and-security): Review Nexus Mutual's audits, bug bounties, and initiatives to strengthen our protocol's security. - [FAQ](https://docs.nexusmutual.io/resources/faq): Nexus Mutual is a decentralized insurance alternative that allows members to join, purchase cover to protect themselves against a variety of risks, and more. - [Glossary](https://docs.nexusmutual.io/resources/glossary): Terms used across these docs, in the sense Nexus Mutual uses them. ## Developer Resources - [Developer Resources](https://docs.nexusmutual.io/developers/): The Nexus Mutual protocol is designed to enable easy integrations and allow developers to build on top of the protocol. - [Point-of-Sale (PoS) Integrations](https://docs.nexusmutual.io/developers/pos-integrations): The Mutual now offers PoS integrations, so you can allow users to buy cover directly in your frontend. ### Contracts - [Contracts](https://docs.nexusmutual.io/developers/contracts/): The source code for the Nexus Mutual protocol is available on GitHub. - [Assessments](https://docs.nexusmutual.io/developers/contracts/Assessments): The Assessments contract manages evaluation of cover claims. - [Cover](https://docs.nexusmutual.io/developers/contracts/Cover): The Cover contract manages the purchase and management of coverage within the protocol. - [Claims](https://docs.nexusmutual.io/developers/contracts/Claims): The Claims contract enables cover owners to submit claims and redeem payouts if their claims are accepted. - [Pool](https://docs.nexusmutual.io/developers/contracts/Pool): The Pool contract is a core component of the protocol, responsible for managing collective assets such as ETH and other ERC20 tokens. - [RAMM](https://docs.nexusmutual.io/developers/contracts/Ramm): The Ramm contract is designed to allow swaps between NXM tokens and ETH. - [StakingPool](https://docs.nexusmutual.io/developers/contracts/StakingPool): The StakingPool contract manages NXM staking and allocates capacity for purchased covers within the staking pool. - [StakingPoolFactory](https://docs.nexusmutual.io/developers/contracts/StakingPoolFactory): The StakingPoolFactory contract is responsible for deploying and managing staking pools in the protocol. - [StakingProducts](https://docs.nexusmutual.io/developers/contracts/StakingProducts): The StakingProducts contract manages cover products and their integration into staking pools. - [TokenController](https://docs.nexusmutual.io/developers/contracts/TokenController): The TokenController contract is the core token manager within the protocol, governing NXM minting, burning, and transfers. ### Diagrams - [Diagrams](https://docs.nexusmutual.io/developers/Diagrams/): This document merges multiple Cover and Staking flows with their underlying interactions across Token, Capital, Claims/Assessments, and Governance groupings. #### Contracts Diagrams - [Capital Contracts](https://docs.nexusmutual.io/developers/Diagrams/contracts-diagrams/capital): How the Pool, Ramm, SwapOperator and SafeTracker contracts interact to hold and value the capital pool. - [Claims & Assessments](https://docs.nexusmutual.io/developers/Diagrams/contracts-diagrams/claims-assessment): How the Claims and Assessments contracts interact when a claim is submitted, assessed and paid. - [Cover Contracts](https://docs.nexusmutual.io/developers/Diagrams/contracts-diagrams/cover): All contracts fetch latest contract addresses from Registry: - [Governance & Membership Contracts](https://docs.nexusmutual.io/developers/Diagrams/contracts-diagrams/governance-membership): Contracts resolve their dependencies through the Registry, which also holds membership records, the Advisory Board seats and the emergency pause configuration. - [Staking Contracts](https://docs.nexusmutual.io/developers/Diagrams/contracts-diagrams/staking): All contracts fetch latest contract addresses from Registry: - [Token Contracts](https://docs.nexusmutual.io/developers/Diagrams/contracts-diagrams/token): All contracts fetch latest contract addresses from Registry: #### User Flows Diagrams - [Cover Buyer / Claims Flow](https://docs.nexusmutual.io/developers/Diagrams/user-flows-diagrams/cover-buyer): The contract calls behind buying cover and claiming on it, from the buyer's point of view. - [Staker Flow](https://docs.nexusmutual.io/developers/Diagrams/user-flows-diagrams/staker): The contract calls behind depositing NXM into a staking pool, earning rewards and withdrawing. - [Staking Pool Manager Flow](https://docs.nexusmutual.io/developers/Diagrams/user-flows-diagrams/staking-manager): The contract calls behind creating a staking pool, listing products on it and setting prices and weights. ### User Flows - [Cover Buyer User Flow](https://docs.nexusmutual.io/developers/user-flows/cover-buyer): Buying cover on Nexus Mutual allows users to protect against specific risks (such as smart contract failures or stablecoin depegging). - [Manager User Flow](https://docs.nexusmutual.io/developers/user-flows/manager): Before diving into the details, here's a high-level overview of what a staking pool manager does: - [NXM Staker User Flow](https://docs.nexusmutual.io/developers/user-flows/staker): Staking in NXM Staking Pools allows you to earn rewards by locking up NXM tokens to help underwrite insurance covers. ## Governance - [Governance](https://docs.nexusmutual.io/governance/): Nexus Mutual is an onchain discretionary mutual governed by its members. - [Nexus Mutual DAO](https://docs.nexusmutual.io/governance/dao): People join as members of the Nexus Mutual DAO and access the benefits of membership. ## Real World Insurance Vault - [Real World Insurance Vault](https://docs.nexusmutual.io/rwi-vault/): The Real World Insurance Vault (“RWI Vault”) allows sophisticated investors to earn yield on their USDC. - [Depositor Approval](https://docs.nexusmutual.io/rwi-vault/approval): Depositors are required to pass verification before they are able to interact with the Vault's smart contracts directly. - [Depositing USDC](https://docs.nexusmutual.io/rwi-vault/depositing): Approved depositors may deposit USDC into the RWI Vault smart contract. - [Insurance Partners](https://docs.nexusmutual.io/rwi-vault/insurance-partners): The Vault Operator sources returns by depositing funds into offchain insurance opportunities, with a focus on short-tail lines — insurance business where the vast majority of claims are resolved within a relatively shorter timeframe after the policies themselves end. - [Withdrawals](https://docs.nexusmutual.io/rwi-vault/withdrawals): Withdrawals of RWIV into USDC are requested via the app by calling requestRedeem(). - [Governance](https://docs.nexusmutual.io/rwi-vault/governance): Who controls the RWI Vault, and what the contracts let each role do. - [Risks](https://docs.nexusmutual.io/rwi-vault/risks): The RWI Vault is exposed to risks from both Ethereum blockchain infrastructure and institutional insurance exposure. - [FAQs](https://docs.nexusmutual.io/rwi-vault/faqs): The Vault Operator generates returns by providing capital to carefully selected Insurance Partners. ### Yield Structure - [Yield Structure](https://docs.nexusmutual.io/rwi-vault/yield-structure/): There are two ways in which depositors can accrue yield: #### Baseline Yield - [Baseline Yield](https://docs.nexusmutual.io/rwi-vault/yield-structure/baseline-yield/): The Baseline Yield is set at a fixed rate and automatically accrues onto each investor’s loan as represented by the redemption value of the RWIV token. - [Nexus Mutual Cover](https://docs.nexusmutual.io/rwi-vault/yield-structure/baseline-yield/nexus-mutual-cover): The Nexus Mutual Baseline Yield Cover is designed to pay out in case the Vault is unable to meet the Baseline Yield. #### Bonuses - [Bonuses](https://docs.nexusmutual.io/rwi-vault/yield-structure/bonuses/): RWIV tokens can be locked in the Vault smart contracts for a specified duration to earn points. - [Net Asset Value Calculation](https://docs.nexusmutual.io/rwi-vault/yield-structure/bonuses/nav-calculation): At the end of every quarter (31/03, 30/06, 30/09, 31/12), the VO calculates total Net Asset Value ("NAV"). ### Contracts - [Contracts](https://docs.nexusmutual.io/rwi-vault/contracts/): The contracts behind the Real World Insurance Vault, and what an integration can and cannot rely on. - [RWIVault](https://docs.nexusmutual.io/rwi-vault/contracts/RWIVault): The RWIVault contract takes USDC deposits from approved depositors and issues RWIV, whose redemption value grows at a fixed per-second rate. - [Locks](https://docs.nexusmutual.io/rwi-vault/contracts/Locks): The Locks contract holds RWIV that members have committed for a fixed period, and pays out the bonuses that commitment earns. - [RWIRegistry](https://docs.nexusmutual.io/rwi-vault/contracts/RWIRegistry): The RWIRegistry contract is the vault system's address book, member register and pause switch.