Quota Share Cover

Onchain cover providers and other providers can protect their underwriting capital against the underlying risks they offer coverage for.

Covered Risks

Onchain cover providers and other providers underwrite coverage for various risks, which can result in claim payouts that reduce their underwriting capital.

Quota Share Cover allows other cover providers to shift a portion of their risk exposure onto the Mutual.

This is a bespoke product that can be created for individual cover providers.

Currently, Nexus Mutual provides Sherlock, auditing and smart contract coverage protocol, with Quota Share Cover (a.k.a., Sherlock Quota Share Cover) and Uno Re with Quota Share Cover (a.k.a., Uno Re Quota Share Cover). For more information, read the full terms and conditions of Nexus Mutual’s Sherlock Quota Share Cover and Nexus Mutual's Uno Re Quota Share Cover.

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

Proof of Loss

When Quota Share Cover is purchased, an organization would include a list of the risks they offer protection for along with the agreed upon underlying cover amount and the Quota Share.

If a claim is filed, the covered organization would provide evidence that claims have been paid. This can be onchain or offchain proof of loss, depending on which organisation holds active Quota Share Cover.

For Sherlock Quota Share Cover, proof of claim payments would be provided onchain.

Claim Filing Process

When a covered organization pays out claims for an underlying risk that is included in the Quota Share Cover wording, they can file a claim in the Nexus Mutual user interface.

Your organization will need to wait 14 days for the cool-down period to pass. The cool-down period applies for Quota Share Cover claims.

Your organization will file a claim using evidence of their claim payments for the covered underlying risks.
Claim assessors will review, discuss, and vote to approve claims where proof of loss shows that your organisation has indeed paid out claims for covered underlying risks above the deductible.
- If the claim is approved, your organisation will be able to redeem the payout after the 24-hour cool-down period ends
- If the claim is denied, your organisation will be able to file another claim with more supporting evidence

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

Members have paid a total of $1,042,309 to Sherlock, which represented a portion of their claim payment to Euler Finance, Sentiment, and Anja Finance per the terms of Sherlock Quota Share Cover.

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

Organizations interested in learning more about Quota Share Cover can fill out this contact form and the business development team will contact you to explore tailored cover options and pricing.

Quota Share Cover

Covered Risks​