Nexus Mutual

Nexus Mutual is a member-owned crypto cover mutual for supported onchain and custody-related risks. It pairs a member's cover purchase with capital from the Mutual and NXM staked into pools, instead of offering one standardized insurance policy line.

Cover NFTs tied to a member address

Members buy cover by choosing a supported product, cover amount, period and acceptable onchain pricing slippage. Fees can be paid in ETH, USDC, cbBTC or NXM, and the purchase becomes an ERC-721 cover NFT.

The NFT can be renewed, transferred or edited to change its amount or period. It also supports partial claims while the unused cover remains active for the rest of its term. A recipient does not need to be a member to receive the NFT, but buying cover and filing a claim require a member's whitelisted address.

Staking pools provide the capacity for cover

A cover can only be bought when one or more NXM staking pools have capacity for the selected risk. The price and availability of cover therefore connect directly to where risk stakers have allocated capital, rather than being independent of the Mutual's underwriting base.

NXM is both the governance and underwriting token. A member can delegate NXM to a pool manager, who allocates the pool across supported products and can use delegated voting power. Stakers earn NXM when cover is bought from their pool, while an approved claim can burn the NXM allocated to that product across the pool's stakers.

Capital backing and the cost of underwriting

The Capital Pool holds crypto assets backing NXM. It receives cover fees and capital contributions, pays valid claims, and can hold investments whose returns accrue to the Mutual. Its Minimum Capital Requirement is tied to total active cover, with a gearing factor that governance can update.

Staking has its own commitment: the current model uses lock periods from 91 days to two years. The stake is represented by an NFT that can be sold before the term ends, but the underlying NXM cannot simply be withdrawn early.

Claims assessed outside the staking pools

An expert-led Claims Committee assesses claims rather than the staking pools. A claim currently needs a 0.05 ETH deposit plus incident and proof-of-loss information; the committee uses a 72-hour voting window, and an accepted claim has a 24-hour cool-down before payout redemption.

A denied claimant can appeal with additional evidence. Nexus Mutual is consequently most direct for a member seeking cover on a supported crypto risk, while its membership gate, selected-address requirement and available staking capacity constrain what can be bought.

Direct member cover versus Nayms portfolio structures

Nayms also connects onchain capital with insurance risk, but it is organized around business entities, policy roles and cells that manage portfolios. Nexus Mutual instead centers on a member purchasing cover against mutual capital and risk staking.

Nayms is more relevant when a business needs to create or finance an entity-managed insurance or reinsurance portfolio. Nexus Mutual is the closer fit for a member buying cover for one of its supported products.