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Protocol Cover

When you deposit crypto assets into a single protocol, your funds are exposed to a variety of risks within that protocol.

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:

  • A smart contract code bug or error resulting in the Designated Protocol being used in an unintended way
  • A Sudden and Severe Economic Event, which includes oracle manipulation or failure, severe liquidation failures, or governance takeovers

Nexus Mutual offers two Protocol Cover products:

  1. Protocol Cover, which protects deposits in a single protocol against the above risks
  2. Bundled Protocol Cover, which protects deposits across multiple protocols against the above risks

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.

Bundled Protocol Cover wording

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

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

Information about Bundled Protocol Cover listings

More to be added!

Proof of loss

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

For Protocol Cover claims, on-chain 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 on-chain 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

Claims process

After an exploit occurs, you will need to wait 72 hours for the cool-down period to pass. The cool-down period applies for Protocol Cover claims.

  1. If you hold Protocol Cover at the time the exploit occurs, you can submit a claim with supporting evidence, otherwise referred to as proof of loss.
    • 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.
    • 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. 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 the claim is approved, you will be able to redeem your claim payout.
    • If the 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 Claims Assessment section.

Protocol Cover claim payouts

Members have paid a total of $10,819,078.50 to cover holders 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.