Formation of Risk and assessment team

Upon the approval of this proposal what will occur is:

The Risk and Assessment team will form, ready to secure NXM right from the beginning of an application.

  1. R&A Team will be responsible to investigate an application for the benefit of insurance coverage.

  2. Scaling Risk right from the beginning based on 1-5 RFs (Red Flags) Thus explained below:

  • Past History of applicant (99.7% shows blockchain offenders will repeat a similar event, typically with the same team, there’s always a trail)

  • Reputation based on Wealthy and Healthy transactions (History shows financially struggling teams with tight schedule pose a threat due to stress factor)

  • **Check and understand the past Audits of an applicant (**If Vulnerabilities found, depending the severity that is, that poses a threat to our treasury)

  • Read and understand to a certain degree if necessary! The code or contract of an applicant (this acts as a secondary fail-safe when there’s no past history. Extra layer of protection specially if the audit originated from a Non reputable company.

  • Lastly and firstly… Is extremely important to understand the "WHY?" the applicant is looking for coverage? If it doesn’t makes sense, well, it doesn’t.

The above represent the idea of the “1-5 Red flags” Any findings will be presented openly and in a transparent way to the members for voting.

The Above practice will help in two ways

1: Accept or Denied

2: An applicant with a score of RFs-3 can be accepted but premiums need to reflect the risk we are willing to undertake, thus leading in a secured financial growth of our members and treasury.

The R&A team will act as the first line of defense, better do a thorough and educated screening upfront than suffering the headaches, claims and financial loss in the back end.

  • Essentially the formation of this small, tactical team i believe will greatly minimize financial loses, offering actual findings of a potential application so the members can have an educated vote.

  • In addition the applications that been approved with a proper screening from the R&A team will carry a substantial lesser risk, thus making it more secure and attractive to our members to invest in and maybe see an increase of membership knowing that we offer the best practices in the industry.

WHO can apply and Join The R&A team?

  • All members are welcome to apply
  • With that said, be part of this team carries a substantial responsibility to NXM, leaders, members and ultimately treasury. So it’ll require quite a bit of time and effort securing and providing peace of mind to everybody involved.
  • Team needs to have direct communications with a senior member during an assessment, transparency is key element.
  • Also not sure if mentioned but Transparency, transparency and some more.

As a closing statement i’ll say that while cryptocurrency sees more adaptation and an amazing explosive growth, we all see that… So do the scams, rugs, inside jobs, flips and tricks. they do get way more sophisticated. the “Lone wolf” exploiting a Hex or a simple line in solidity era has ended. Now they operate in teams, next step in evolution will be DAOs and communities with a spectacular discord server, funds and zero suspicion. we need a dedicated Team to counter that. As far as some other insurance providers which will fail to adapt to the reality of the situation, We will be prepared and secured an obvious and easy choice. And that’s good business.

A form of Grant i believe suits this task under one condition: If this proposal and grant gets approved, it has to be STAKED automatically for at least ONE YEAR by the members of R&A Team. This will ensure good practices are in place, genuine intent to protect our members and most importantly long term commitment. We need believers for this task, not story tellers.

Few things about me i ran numerous investigations (Immunefi team is rock solid and an amazing asset) from re-entries, least was claimed as one, to identity thefts, rugs, “Bugs” flash loans, You- tubers. also Ex green beret eight years, no blockchain back then though

This proposal meant to be written two months ago but due to family issues was delayed, apologies for that. Have to re activate my discord as well…

All ideas welcomed and appreciated, we into this together.

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Thanks for your post.

The process for governance proposals is as follows:

  1. Raise here and open for discussion for members for at least 7 days.
  2. Proceed to voting.
    a) If you’re after a grant it goes via the Community Fund snapshot
    b) If it’s a core protocol change it goes on Nexus Mutual’s core governance (on-chain)

As this is category a) please don’t raise anymore on-chain proposals, they won’t get put into formal governance.

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To comment on the proposal specifically, I’m not sure how this relates to Nexus Mutual’s objectives. The post indicates some confusion on how Nexus Mutual works and does not clearly articulate what service is offered, how it will benefit the mutual or outline any specific costs.

For clarity, the Advisory Board decides which risks are listed and stakers have ultimate control on which protocols are backed (no staking = no coverage).

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