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FAQ

Basics​

What is Nexus Mutual?​

Nexus Mutual is an insurance alternative that operates as a discretionary mutual, where people can join as members and share risk with others. Members can participate in various roles, such as NXM stakers, who underwrite cover; cover buyers, who purchase coverage to protect against risk; claim assessors, who stake NXM and review filed claims; and governance participants, who vote on protocol and DAO proposals to shape the Mutual's future.

It replaces the idea of a traditional insurance company because it is wholly owned by the members.

Learn more in the Overview section.

What does "risk sharing" mean?​

All members and NXM holders collectively own the capital pool and its assets. By acting as a member and holding NXM, you are pooling capital and sharing risk with others. When claims are paid, members who stake NXM can have their stake burned to facilitate claim payouts, which flow out from the capital pool.

Everyone within the Mutual pools capital and shares risk.

Learn more in the Protocol section.

Does Nexus Mutual offer "insurance"?​

Nexus Mutual cover is not a contract of insurance. Cover is provided on a discretionary basis with Nexus Mutual members having the final say on which claims are paid. Members are putting trust in the protocol's design and fraud protection mechanisms rather than an insurance company.

Nexus Mutual is a discretionary mutual: a mutual fund that provides discretionary cover, which is an insurance-like product that involves only a discretion, not a legal obligation, to pay out on the occurrence of a material loss.

Membership​

How do I become a member?​

You can go to the Nexus Mutual user interface to begin the membership application process.

See the Membership page for more information.

Will I get a notification when the membership process has been completed?​

Yes, once your KYC has completed you will receive an email notification to the email you used to register as a member.

If more than 24 hours has passed and your membership still hasn't gone through, please reach out through the Nexus Mutual contact forum.

Cover products​

What risks do you cover?​

Nexus Mutual provides a variety of cover products including Protocol Cover.

For a full list of Nexus Mutual's cover products, see the Cover Products page.

Can I buy cover for assets in wallets other than my registered address?​

Yes, you can. You need to buy cover using the Ethereum address you used to sign up for membership (i.e. your registered membership address). Cover is purchased with that address but you can protect assets in other wallets. If you suffer a loss of funds and need to file a claim, you will need to submit proof of loss, which differs for each cover product.

Can I buy cover for another person such as my spouse?​

No, you cannot buy cover for another person even if that person is your spouse. Someone can only buy cover for their assets or deposits per the language in each product's cover wording. Anyone who joins as a Nexus Mutual member can buy cover for their assets and/or deposits.

How do I get my protocol listed on Nexus Mutual?​

If you're interested in having your protocol reviewed for a potential listing in the Nexus Mutual user interface, you can use the following contact form to provide your request, which the Product team will review and determine if a listing is appropriate at this time.

Claims​

Have any claims been paid?​

To date, members have paid $18M+ to people who suffered a loss due to past exploits, technical failures, and halted withdrawals on centralised custodians.

To learn more, see the Claims History section of the documentation.

How do I know my claim will be paid?​

Our Claim Assessment process is designed to prevent anyone from submitting fraudulent votes. The claims process is battled-tested and has been used to review and approve $18M+ in claims to date.

Because members have to stake NXM to participate in the Claim Assessment process, they risk having their stake burned if they vote fraudulently. See the Claim Assessment section for more details on the security of the claims process.

When is loss of funds (in DAI or ETH) determined for a claim?​

Loss is determined at different times for different cover types:

  • Protocol Cover. Loss is determined just before the time the loss of funds occurred.

See the Cover Products section for more information about loss.

How do I provide proof of loss?​

Proof of loss is different for each cover product. You can find information on proof of loss on each page within the Cover Products section.

How long does the Claim Assessment process take?​

From the time you submit your claim, it usually takes between three (3) and six (6) days for claim assessors to review, vote, and determine a claim's outcome.

Staking​

What does it mean to delegate my staked NXM?​

When you stake your NXM, you can choose to allow a staking pool manager the ability to allocate and stake your NXM against different cover products. You also delegate your voting power for protocol governance to the staking pool manager.

Learn more in the Staking section.

What is a staking period?​

A staking period is the length of time you choose to lockup your staked NXM in a staking pool of your choosing.

Learn more in the Staking section.

What are the risks of staking NXM?​

Your NXM can be burned to facilitate claim payouts if members who purchased cover from the staking pool file successful claims.

If a claim is filed and approved by claim assessors, then the staked NXM allocated to the relevant cover product is burned proportionally across all stakers.

Learn more in the Staking section.

Governance​

How can I get involved in Nexus Mutual governance?​

You can stay active and engaged on the Nexus Mutual governance forum and learn how to start a discussion or raise a proposal by reviewing the Governance section.

Does Nexus Mutual have a grants program?​

If you wish to contribute to the DAO by working on a single-purpose project, providing a short-term service, building tools for members, or other means, you can submit a grant-specific Nexus Mutual DAO Proposal.

How can I contribute to the DAO?​

There are a variety of ways to contribute to the Mutual and the DAO. Learn more about how the Nexus Mutual DAO operates and how you can contribute.

NXM Token​

Why do you need the NXM token?​

The NXM token is needed in order to bind together the internal economics of the Mutual, so that the platform can:

  • Dynamically react to the prevailing conditions and capitalisation levels; and
  • Reward active members for participating in the day-to-day operations of the Mutual

When did the NXM token launch?​

Nexus Mutual and the NXM token were launched on 30 May 2019. You can read our We’ve Launched Medium post for details about the initial launch. You can check out the Nexus Mutual user interface as well.

Is NXM listed on any exchanges?​

The NXM token is not listed on exchanges and the Mutual does not expect to list NXM on exchanges in the future. Due to the nature of the token model and the requirement for tokens to belong to members only, any exchange listing would have to be bespoke.

Tokens will be redeemable directly from within the Nexus Mutual user interface for ETH.

Can I transfer NXM tokens?​

Yes, as long as the address being transferred to is also a Nexus Mutual member; the transaction will fail if this is not the case.