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Multi Protocol Cover

When you are earning yield using a strategy that involves more than one (1) protocol, your crypto assets are exposed to risk across multiple protocols. Multi Protocol Cover is designed to protect your assets against smart contract and economic risk within multiple protocols' smart contracts.

Covered Risks​

When you have crypto assets deposited in a protocol that deposits funds into other protocols to earn yield on Ethereum, an EVM-compatible network, or an Ethereum Layer 2, Multi Protocol Cover protects against the following risks:

  • Smart contract exploits/hacks
  • Oracle failure
  • Oracle manipulation
  • Liquidation failure
  • Governance takeovers

Multi Protocol Cover Wording​

For more information, read the full terms and conditions of Nexus Mutual's Multi Protocol Cover.

Nexus Mutual's Claims Committee use this cover wording as a reference when considering any Multi Protocol Cover claim.

Note: Every Multi Protocol Cover listing includes an annex documented linked in the Terms and Conditions section on the Buy Cover page. You can review the annex for each listing to confirm which protocols are included in the Multi Protocol Cover listing.

Upfront Proof of Loss​

When you hold Multi Protocol Cover and suffer a loss of funds, you can file a claim and the Claims Committee will review your claim submission to determine whether your claim is valid.

For Multi Protocol Cover claims, you provide the wallet address or addresses you want to apply to your cover in the Nexus Mutual app during the cover purchase process. If you need to edit your covered addresses to remove or add additional addresses, you can do that during the active cover period.

How It Works​

  1. In the Nexus Mutual app, choose the listing you want to purchase cover for, enter your desired Cover Amount and Cover Period.
  2. You will see an Extra Cover Info section just below the Cover Details. Enter the wallet addresses you want your cover to apply to. This will serve as your proof of loss. If a loss occurs from a wallet that is not included in the Extra Cover Info, your coverage won't be applicable. It's important to enter all the wallets you want to be covered.
  3. The Buy / Edit button will be disabled until you enter the wallet address(es) you want to include in your coverage, so nothing is missed.
  4. Once that information has been entered, you can complete your cover purchase. The wallet addresses you share will be submitted and stored privately with the cover.
  5. View your wallet address(es) information any time under the Your Covers section of the Nexus Mutual app and sign a message with your membership wallet to reveal the private information.

Benefits for Members​

  • Network support. This feature now allows Nexus Mutual to underwrite coverage for both EVM-compatible networks and non-EVM networks like Solana.
  • This information is private by default. Your details are stored privately in Nexus Mutual's offchain database, not on public IPFS (which only holds a reference), and are only accessible by you after you sign a message with your membership wallet to reveal or edit those addresses. Your session keeps you signed in as you go. Claims Committee members will access this private data when needed for Claims Assessment and can use that information to help you calculate your Claim Amount ahead of you filing a claim.
  • Required where it matters. Only listings and cover products that require this information will ask for it, and only before that cover can be purchased or edited.

How Upfront Proof of Loss is Used by the Claims Committee​

Because you provide your covered wallet addresses when you purchase cover and you can add or remove addresses before a loss event occurs, the Claims Committee will be able to review the onchain history associated with the covered wallet address(es) to determine:

  • If funds were deposited when the loss event occurred
  • If the cover was active when the loss event occurred
  • If you suffered a loss of funds and, if so, the amount of funds that were lost and the eligible Claim Amount

The Claims Committee can help you prepare for claims filing during the cool-down period, so your claim can be processed as quickly as possible.

Claim Filing Process​

After a loss event occurs, you will need to wait 14 days for the cool-down period to pass. The cool-down period applies for Multi Protocol Cover claims, per the cover wording. During that time, the Claims Committee can help you prepare for claims filing.

  1. If you hold Multi Protocol Cover at the time the loss event occurs, you can submit a claim with supporting evidence. Your proof of loss has already been provided as noted above.
    • You will be able to include written details, links to supporting documentation, and/or upload screenshots or other files in the Incident Details portion of the claim submission process
  2. The Claims Committee will review, discuss and vote to approve claims where proof of loss (i.e., your covered wallet address(es)) shows that you have indeed suffered a loss of funds.
    • If your claim is approved, you will be able to redeem your claim payout after the 24-hour cool-down period passes in the Your Covers menu. You can also check your Dashboard to see the status of any active claims.
    • If your claim is denied, you will be able to file another claim with more supporting evidence

For a review of the claim assessment process, see the Claim Assessment section.

Protocol Cover Claim Payouts​

Members have paid a total of $10,819,078.50 to people who suffered a loss due to past exploits and technical failures.

To review Nexus Mutual's past claims record and individual case studies, you can see the Claims History section.