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Protocol Cover

When you deposit crypto assets into a protocol, your funds are exposed to a variety of risks within that protocol. Protocol Cover is designed to protect you funds against smart contract and economic risk within one (1) protocol's smart contracts.

Covered Risks​

When you have crypto assets deposited in a protocol that is deployed on Ethereum, an EVM-compatible network, or an Ethereum Layer 2, Protocol Cover protects against the following risks:

  • Smart contract exploits/hacks
  • Severe oracle failure/manipulation
  • Severe liquidation failure
  • Governance attacks

Protocol Cover Wording​

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

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

Proof of Loss​

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

For Protocol Cover claims, onchain proof of loss is required. You will file a claim and either sign a transaction using your affected address or send a 0 value transaction with your affected address to prove you own and control that address.

Once you prove that you own and control the affected address, claim assessors can review the onchain history associated with the address 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

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 Protocol Cover claims, per the cover wording.

  1. If you hold Protocol Cover at the time the loss event occurs, you can submit a claim with supporting evidence, otherwise referred to as proof of loss.
    • 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
    • You will choose to either sign a message from the affected address or send a 0 value transaction from the affected address to prove you own and control the affected address
  2. Claim assessors will review, discuss and vote to approve claims where proof of loss 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.