Even if you’re fully aware of the potential risk, that’s completely different from the worst case scenario actualizing and the mutual not taking reasonable discretionary steps to minimize damage to its users.
The DeFi coverage industry is still brand new and every past claim, especially the largest payout of all-time, will be analyzed by future institutional risk assessors to determine whether they want to join the ecosystem.
They will see that there were more steps that could have been taken to minimize damage, the wording of the agreement has been interpreted both ways by users, and there was little debate before it defaulted to paying out.
I believe it’s important to show that, even if there are shortcomings in the code, the users are Nexus’ top priority.
I would like to propose an option for 50% (~22k wNXM) to be reimbursed to Rari stakers in the manner proposed by Hugh here Proposal: Reimburse Risk Assessors for Undue Loss from Claim 113 - #2 by Hugh.