{
  "$schema": "https://degreesofsatoshi.com/encyclopedia/schemas/article-v1.json",
  "schemaVersion": "1.0.0",
  "id": "defi-cover-claims",
  "canonical": "https://degreesofsatoshi.com/encyclopedia/defi-cover-claims/",
  "collection": "defi",
  "title": "DeFi cover: covered events, exclusions and the claims process",
  "description": "Read a DeFi cover product’s event, amount, period and claim rules before treating it as protection for a loss.",
  "aliases": [
    "DeFi cover insurance exclusions claim",
    "does DeFi cover pay for every exploit"
  ],
  "dates": {
    "published": "2026-10-02",
    "modified": "2026-10-02",
    "verified": "2026-10-02T19:18:00.092Z",
    "dataAsOf": "2026-10-02"
  },
  "authorship": {
    "publisher": "Degrees of Satoshi editorial project",
    "process": "AI-assisted research and drafting with a separate automated source-verification pass; no external expert or named human review is implied."
  },
  "quickAnswer": {
    "text": "DeFi cover is an agreement or mutual arrangement addressing specified losses under its wording. It does not automatically cover every price decline, exploit or inaccessible balance. Nexus Mutual’s current documentation describes discretionary cover: a Claims Committee assesses a claim against the wording for the selected product, amount and period.",
    "claimId": "defi-cover-claims-quick-answer",
    "sourceIds": [
      "x425-defi-nexus-cover"
    ]
  },
  "keyFacts": [
    {
      "label": "Specific risk",
      "value": "Members choose a risk, amount and coverage period.",
      "sourceIds": [
        "x425-defi-nexus-cover"
      ],
      "id": "specific-risk",
      "claimId": "defi-cover-claims-fact-specific-risk"
    },
    {
      "label": "Assessment",
      "value": "The cited cover is discretionary and assessed against its wording.",
      "sourceIds": [
        "x425-defi-nexus-cover"
      ],
      "id": "assessment",
      "claimId": "defi-cover-claims-fact-assessment"
    },
    {
      "label": "Existing cover",
      "value": "A delisted offering’s already-held cover remains subject to its own term and wording.",
      "sourceIds": [
        "x425-defi-nexus-cover"
      ],
      "id": "existing-cover",
      "claimId": "defi-cover-claims-fact-existing-cover"
    }
  ],
  "prerequisites": [
    "smart-contract-audits"
  ],
  "sections": [
    {
      "id": "example",
      "heading": "Compare the loss with the covered event",
      "sourceIds": [
        "x425-defi-nexus-cover"
      ],
      "paragraphs": [
        "Imagine cover written for a defined smart-contract failure during a particular period. A token falling in market price without that failure is a different event. Even a real technical incident needs to meet the wording’s conditions; the name of the affected protocol is not enough.",
        "The example illustrates scope and does not paraphrase a specific product’s full exclusions."
      ]
    },
    {
      "id": "documents",
      "heading": "Keep the wording that applies to the purchase",
      "sourceIds": [
        "x425-defi-nexus-cover"
      ],
      "paragraphs": [
        "The product determines the wording, grace period and proof-of-loss requirements. Record the listing, covered amount, start and end dates, ownership evidence and the applicable wording. A general marketing page is not a substitute for those terms."
      ]
    },
    {
      "id": "claim",
      "heading": "A submission and a payout are separate outcomes",
      "sourceIds": [
        "x425-defi-nexus-cover"
      ],
      "paragraphs": [
        "Claim assessment determines whether the reported loss meets the cover conditions. Buying cover does not pre-approve a future claim, and an incident announcement does not establish the payout amount. If a listing later disappears from new sales, inspect the existing cover’s own term rather than assuming it was automatically cancelled."
      ]
    }
  ],
  "faq": [
    {
      "question": "Does an audit or bug bounty give me the same protection as purchased cover?",
      "answer": "No. Audits and bounties are security mechanisms, while cover has its own loss and claim terms.",
      "sourceIds": [
        "x425-defi-nexus-cover",
        "x425-defi-oz-mainnet",
        "x425-defi-aave-bounty"
      ]
    }
  ],
  "claims": [
    {
      "id": "defi-cover-claims-quick-answer",
      "articleSlug": "defi-cover-claims",
      "statement": "DeFi cover is an agreement or mutual arrangement addressing specified losses under its wording. It does not automatically cover every price decline, exploit or inaccessible balance. Nexus Mutual’s current documentation describes discretionary cover: a Claims Committee assesses a claim against the wording for the selected product, amount and period.",
      "sourceIds": [
        "source-a8ad9738787ae4b2"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-a8ad9738787ae4b2",
          "locator": "Product wording; discretionary cover; claims"
        }
      ],
      "scope": {
        "collection": "defi",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
        "status": "verified",
        "method": "independent automated source review",
        "checkedAt": "2026-10-02T19:18:00.092Z",
        "reviewer": "Independent automated verification — Codex root, separate from the DeFi drafting agent",
        "notes": [
          "Checked current Nexus Mutual product documentation: discretionary Claims Committee, own wording/period, delisted existing cover still valid. No generic incident-to-guaranteed-payout inference."
        ]
      }
    },
    {
      "id": "defi-cover-claims-fact-specific-risk",
      "articleSlug": "defi-cover-claims",
      "statement": "Specific risk: Members choose a risk, amount and coverage period.",
      "sourceIds": [
        "source-a8ad9738787ae4b2"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-a8ad9738787ae4b2",
          "locator": "Product wording; discretionary cover; claims"
        }
      ],
      "scope": {
        "collection": "defi",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
        "status": "verified",
        "method": "independent automated source review",
        "checkedAt": "2026-10-02T19:18:00.092Z",
        "reviewer": "Independent automated verification — Codex root, separate from the DeFi drafting agent",
        "notes": [
          "Checked current Nexus Mutual product documentation: discretionary Claims Committee, own wording/period, delisted existing cover still valid. No generic incident-to-guaranteed-payout inference."
        ]
      }
    },
    {
      "id": "defi-cover-claims-fact-assessment",
      "articleSlug": "defi-cover-claims",
      "statement": "Assessment: The cited cover is discretionary and assessed against its wording.",
      "sourceIds": [
        "source-a8ad9738787ae4b2"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-a8ad9738787ae4b2",
          "locator": "Product wording; discretionary cover; claims"
        }
      ],
      "scope": {
        "collection": "defi",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
        "status": "verified",
        "method": "independent automated source review",
        "checkedAt": "2026-10-02T19:18:00.092Z",
        "reviewer": "Independent automated verification — Codex root, separate from the DeFi drafting agent",
        "notes": [
          "Checked current Nexus Mutual product documentation: discretionary Claims Committee, own wording/period, delisted existing cover still valid. No generic incident-to-guaranteed-payout inference."
        ]
      }
    },
    {
      "id": "defi-cover-claims-fact-existing-cover",
      "articleSlug": "defi-cover-claims",
      "statement": "Existing cover: A delisted offering’s already-held cover remains subject to its own term and wording.",
      "sourceIds": [
        "source-a8ad9738787ae4b2"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-a8ad9738787ae4b2",
          "locator": "Product wording; discretionary cover; claims"
        }
      ],
      "scope": {
        "collection": "defi",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
        "status": "verified",
        "method": "independent automated source review",
        "checkedAt": "2026-10-02T19:18:00.092Z",
        "reviewer": "Independent automated verification — Codex root, separate from the DeFi drafting agent",
        "notes": [
          "Checked current Nexus Mutual product documentation: discretionary Claims Committee, own wording/period, delisted existing cover still valid. No generic incident-to-guaranteed-payout inference."
        ]
      }
    }
  ],
  "sources": [
    {
      "id": "x425-defi-nexus-cover",
      "label": "Cover Products",
      "publisher": "Nexus Mutual",
      "url": "https://docs.nexusmutual.io/overview/cover-products/",
      "locator": "Product wording; discretionary cover; claims",
      "note": "Scope, period and discretionary assessment, without calling it guaranteed compensation.",
      "version": "Documentation retrieved for the 2026-10-02 editorial scope; content hash recorded",
      "checkedAt": "2026-10-02T18:53:23.174Z",
      "contentSha256": "8b38c100b57b9be9f06d1ffada0ecc579ba6a9b756c77b4b0c95d843e5b7900e",
      "recordId": "source-a8ad9738787ae4b2"
    },
    {
      "id": "x425-defi-oz-mainnet",
      "label": "Preparing for mainnet",
      "publisher": "OpenZeppelin",
      "url": "https://docs.openzeppelin.com/contracts/5.x/learn/preparing-for-mainnet",
      "locator": "Auditing and security; Admin accounts; Upgrades admin",
      "note": "Audits are scoped security work, not a guarantee.",
      "version": "Primary page retrieved 2026-10-02; hash recorded",
      "checkedAt": "2026-10-02T19:10:47.728Z",
      "contentSha256": "fcc42714a13cadcdc2be1db3c72e63f47865f426b94a3baebb02459111d08a27",
      "recordId": "source-51752d973dc3abdc"
    },
    {
      "id": "x425-defi-aave-bounty",
      "label": "AAVE Bug Bounty",
      "publisher": "Immunefi / Aave DAO",
      "url": "https://immunefi.com/bug-bounty/aave/information/",
      "locator": "Program overview; scope; eligibility; prohibited activities",
      "note": "Program terms illustrate limitations; no guarantee of absence of bugs.",
      "version": "Primary page retrieved 2026-10-02; hash recorded",
      "checkedAt": "2026-10-02T19:10:47.211Z",
      "contentSha256": "bd6fcacfec7ed6e1e823bd62e65e5d6f25298b87a420f8702d8dc0bc4dc0eecc",
      "recordId": "source-56c47d2d3baa981e"
    }
  ],
  "related": {
    "articles": [
      "bug-bounties-vs-audits",
      "protocol-backstop-staking",
      "documented-defi-exploits",
      "liquidity-locks-burned-lp",
      "rug-pulls-vs-exploits"
    ],
    "dossiers": [],
    "wallets": []
  },
  "revisionHistory": [
    {
      "date": "2026-10-02",
      "kind": "published",
      "summary": "First publication after primary-source research and separate automated verification."
    }
  ],
  "citation": "Degrees of Satoshi editorial project. “DeFi cover: covered events, exclusions and the claims process.” Published 2026-10-02; updated 2026-10-02. https://degreesofsatoshi.com/encyclopedia/defi-cover-claims/"
}