Nexus mutual Cover Monitoring, Adjustment and Claim Closure

Cover terms, protected positions and claims use separate records

The Cover NFT records the onchain terms that define the position. Its data includes the product, cover asset, covered amount, start time, period and grace period. The active period determines when a covered loss may occur. The grace period allows a later claim submission for an eligible loss that happened while the cover was active.

For most products, Extra Cover Info identifies the wallets or positions that the cover protects. That information stays private and offchain. A claim submission creates a claim record for the requested amount, redemption period and flags showing whether the payout and deposit have been collected. A linked assessment supplies the status and outcome.

These records answer different questions. The NFT shows the cover terms, Extra Cover Info links those terms to the protected position and the claim details show whether assessment and payment have finished.

Cover changes affect different records

An edit may change either the onchain cover terms or the private proof-of-loss details. Those actions don't update the same fields, so the first monitoring task is to identify which record changed.

Amount and period changes

Editing the covered amount or period creates a new cover ID linked to the original. The latest linked ID carries the current amount, asset, start time and duration. An old ID may still appear in a wallet or data tool, but it no longer provides the complete current view. Follow the edit reference before deciding that the update succeeded.

A new fee applies to the updated period. Remaining fee credit may apply when the revised cover uses the same staking pool as the original. Because the original fee was converted to NXM, a change in NXM value can affect the available credit. Check the displayed quote before confirming the adjustment.

Proof-of-loss corrections

Changing Extra Cover Info updates the private record associated with the cover. It doesn't, by itself, alter the covered amount or end date. A successful correction should therefore leave the NFT terms unchanged while the required address, chain, position or other product-specific field appears in the private record.

Transfer and ownership

Transferring the Cover NFT changes its onchain owner. It doesn't automatically rewrite the protected position in Extra Cover Info. Check the applicable product wording as well as ownership and proof of loss after a transfer, especially after a loss event. Some terms require the sending and receiving addresses to remain under the same covered member's control and require cryptographic evidence.

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Proof of loss has a hard editing boundary

Each product defines the information it needs. Depending on the product, the fields may include wallet addresses with a chain selection, read-only API keys, validator lists, wallet-balance files or free text. A wallet signature unlocks the private record so its owner can read or change the saved details.

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Proof-of-loss information may be edited while cover is active and during its grace period, but only before a loss event. Once an event has happened, a later correction can't rewrite which position was recorded beforehand. Claim evidence may explain the incident and quantify the loss, but it doesn't replace missing upfront information.

Claim status and outcome change at different points

A claim's linked assessment moves through voting, cooldown and finalized states. The outcome remains pending until voting and cooldown have finished.

Voting

The Claims Committee reviews incident details, proof of loss and the requested amount against the product wording. Some products name a separate Designated Claim Assessor. Voting may close before its full window once every assigned assessor has voted, while governance can extend assessment with another voting window.

Cooldown

A cooldown follows the vote before the outcome becomes final. During this interval, an apparent majority doesn't yet mean that payment is available. The claim status and outcome should still be treated as pending until finalization.

Finalized outcome

Finalization resolves the claim as accepted, denied or drawn. An accepted outcome makes the payout eligible for redemption. A denied outcome produces no payout, while a draw has a separate route for returning the assessment deposit.

Monitoring should follow the claim ID rather than a notification alone. The detailed claim record combines the assessment status, final outcome, metadata and a flag showing whether the payout can currently be redeemed.

Acceptance opens redemption rather than payment

An accepted claim still requires redemption within the period stored when that claim was submitted. Claim details expose the applicable deadline and whether redemption remains available. Redemption sends the approved amount in the cover asset, returns the assessment deposit and marks the payout as redeemed. Until that state changes, acceptance hasn't completed the payment.

A partial payout changes the remaining cover

A redeemed partial claim reduces the covered amount by the payout while leaving the remainder active for the rest of its period. The latest cover data should show that lower amount after redemption. A redeemed claim for the full remaining amount can exhaust the position, while approval alone doesn't provide proof that either the payout or the reduction has occurred.

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Closure depends on matching evidence

For an accepted claim, closure requires consistent ownership, cover, proof-of-loss and claim records. Check that:

• the current owner holds the latest linked Cover NFT;
• the product, asset, remaining amount and relevant dates match the intended cover;
• Extra Cover Info contains the required position details recorded before the event;
• the claim status is finalized and its outcome is accepted; and
• the payout record shows redemption and the receiving wallet shows the transfer.

The returned assessment deposit supplies another payment check for an accepted claim. For a partial payout, the remaining cover amount should equal the pre-claim amount minus the redeemed payout. Relying on a stale original NFT or stopping at an accepted-but-unredeemed claim leaves verification incomplete. If the private record omitted the affected position before the loss, that gap can't be corrected afterward and may prevent the claim from qualifying.

Payment evidence closes the claim, not the broader cover position. Any remaining amount continues only until its recorded end date and remains subject to the same product wording.