Claims

Claims are managed by the Insured Vault operator (typically OpenCover) using the associated policy bound on Nexus Mutual with payouts disbursed to Insured Vault depositors (OC-token holders).

The claim process depends on whether an Insured Vault uses a protocol incident claim trigger or a depeg incident claim trigger. The trigger type for a given Insured Vault is specified in its policy.

Claim process for protocol incident trigger

1. When a suspected covered protocol incident occurs, deposits for the Insured Vault are paused and a 14-day cooldown period is observed to confirm the loss is final and the associated amount.

2. If the loss is confirmed after 14 calendar days, a claim with the final loss amount is submitted to the Nexus Mutual protocol for assessment and payout. This takes up to 4 calendar days.

3. Payouts are then disbursed to Insured Vault depositor addresses pro-rata to their overall Insured Vault share ownership within 3 business days.

Claim assessment

Claims are evaluated by 3-5 specialist claim assessors selected by the Nexus Mutual protocol.

Recovery

In line with traditional insurance practices and to discourage fraud, once a claim is paid out, rights over any recoveries associated with the fund loss event, such as a protocol attacker refunding victims, are assigned to Nexus Mutual.

Claim process for depeg incident trigger

1. When a depeg of the covered token starts, deposits to the Insured Vault are paused and a 10-day cooldown period is observed to confirm the depeg is persistent.

2. If the depeg is confirmed, a dedicated claim multisig is deployed to which covered users transfer their depegged assets. This process takes up to 2 business days.

3. Deposited assets are then swapped using the Nexus Mutual protocol into the payout currency at the rate specified in the policy, and the funds are disbursed to the corresponding Insured Vault depositor addresses within 3 business days.