I’m interested to buy a cover from Nexo Custodian.
I still not buyed it because it’s seems be very complicated. First i want to be sure that by claim can be accepted when something happened.
As i understand i need to make a proof of loss and i need to show that i have funds on Nexo which should be in relation to my wallet where i buyed the cover.
In Nexo i can deposit fiat and hold fiat. I can make screenshots (every day or week?) but for me it is unclear how i can make a proof of loss with only screenshots.
Do i need to withdrawal all to my etherium wallet, buy cover, and than send it with some message (with cover id) back to nexo, or how?
Maybe someone can make a tutorial or video how to do it?
There is a How to Buy Cover walkthrough in the Nexus documentation here.
Nexo Custody Cover protects users in the event that either;
the custodian gets hacked and the user loses more than 10% of their funds, or
withdrawals from the custodian are halted for more than 90 days.
The policy protects crypto assets, so if you hold USD in your account, that’s not something we can cover. However, if you have USDC, DAI, etc. earning interest, that is something the Custody Cover would protect against.
If you were to experience a loss, you would submit Off-Chain Proof of Loss. If there is a smart contract hack that leads to 10% of greater in losses, you would be covered, and you would need screenshots or statements of your balances in Nexo. Most custodians allow you to download electronic statements in PDF, .csv, etc. form. If there is a hack, this would be something claims assessors can confirm. Your off-chain proof of loss would include documentation of your deposits held in Nexo and some record of the loss affecting you (e.g., email stating that there was a loss, public release from affected custodian, etc.).
If withdrawals are halted for more than 90 days, you would also need documentation of your balance, but you would also need to show an attempt to withdraw and the failure of your withdrawal request. A custodian would send a notice that your request failed, so you can document this and include as proof of loss.
Ultimately, when a custodian is affected by a hack or assets are frozen, this will be a news item and something that members can confirm in the Claims Assessment process. You would need to provide your balance statements to indicate how much you lost due to the loss event.
