Overview

Buying cover for your productive assets is the best way to hedge against smart contract risk and protect your funds when you are participating in the Goldfinch Protocol. Buying coverage for the Goldfinch protocol via Nexus Mutual will provide insurance against your supply of USDC in the protocol's Senior Pool or Borrower Pools in the event of a smart contract bug where funds are lost. It's worth noting that coverage does not apply to the credit risk of Borrowers not paying back.

If you need any support purchasing cover get in touch with the Nexus Mutual team via their their Discord server, on Twitter or on Telegram.

What Factors to Think About When Buying Cover

Once you know what cover product you want, you should consider the following factors:

• How long do you need to be covered? The minimum duration of a cover policy is 30 days and the maximum duration is 365 days.
• What payout denomination works best for you? When you buy your cover policy, you have to select the currency you want to receive a payout in should a loss event occur. You can select ETH or DAI. Most users select ETH as they payout denomination for more volatile assets and DAI as the payout denomination for more stable assets.
• Which currency do you want to pay for your policy with? You can pay with ETH, DAI or NXM when you buy your cover policy. Consider which one you want to use for payment.

How to Buy Cover

Now that you are ready to buy cover, you can head to https://app.nexusmutual.io/home.

On the Home page, you will see the Welcome menu below, which displays your current holdings, covers, claims, and membership status.

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The view on the Nexus Mutual Home page

From here, you will select the Buy Cover tab on the main menu. Once you have clicked on that tab, you will see the Buy Cover page, which is presented below:

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The view on the Buy Cover page of the Nexus Mutual application

On this page, you can see the different brief explanations of the mutual's cover products. Below these explanations are the various listed protocols, custodians, and yield token cover products.

You can filter by cover product: Yield Tokens, Protocols, and Custodians. You can also enter in the name of the platform or product you want to buy cover for.

In this tutorial, you will follow the process for buying cover by walking through a Protocol Cover policy purchase for Goldfinch Finance.

To find the Goldfinch Finance listing, you can enter the name of the protocol in the Search bar: