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Buy cover

Cover protects a position against a defined risk for a set amount and period. It is bought in the Nexus Mutual app.

Before you start​

You need to be a member, and you need the cover asset you intend to pay in.

Check that the risk you want covered has a listing. The product index is the current list of everything the Mutual covers; the cover products pages explain what each product protects against.

What you choose​

The listing. The specific thing being covered, such as one protocol. Each listing is sold under a product, and the product is what sets the cover wording.

The amount. How much of the position you want covered. This does not have to be the whole position.

The period. Between 28 and 365 days. Cover starts when you buy it.

The cover asset. The asset the cover is denominated in and would be paid out in.

The price comes from the staking pools backing that listing, so it moves with how much of their capacity is already in use. See Pricing for how that works.

You can also wait for a lower price with a limit order, see Place a limit order.

Proof of loss is collected upfront​

Most cover requires you to give proof of loss at the point of purchase: the addresses or positions the cover applies to. This is recorded with the cover. You can edit it later, see Updating your cover info.

Getting this wrong is the most common reason a claim fails. A loss on an address you did not list is not covered, however genuine the loss.

Check which details a listing requires before you buy, and check them again before you confirm.

What you receive​

Cover is held as an NFT in the address that bought it. It can be transferred or sold along with the position it protects, and whoever holds it can claim on it.

Read the cover wording​

The wording is the contract. It defines what counts as a loss, what is excluded, and what evidence you need. Every claim is assessed against it by the Claims Committee.

Two things in it are worth knowing before you buy rather than after a loss:

  • the grace period, which is how long after the cover expires you can still file a claim for a loss that happened while it was active. It varies by product, from a couple of weeks to several months.
  • the deductible, where one applies. Losses below it are not claimable.

Each product's page links its wording, and the wordings are also published on IPFS.

Updating your cover info​

Reach the Extra Cover Info panel from a cover you hold, to edit your proof of loss.

Each product defines what it asks for: covered wallet addresses with a chain selector, API keys, a validator list upload, a wallet-balances upload, or free text. Some products also carry a quota share.

You can edit it while your cover is active and during the grace period that follows, up until any loss event.

The information is stored privately and offchain. Reading it back needs a wallet signature proving you own the address. The Claims Committee reads it to validate claims. See the FAQ's upfront proof of loss entry, and File a claim for what happens after a loss.

After buying​

Your cover appears in the app. If you suffer a loss, see File a claim.

Cover runs to its end date, then stops. You can edit the cover to extend its period, see Cover. A renewal order buys the next cover automatically, see Place a limit order.