Introduction
The Neptune Mutual protocol is based on the parametric coverage model, a kind of insurance designed to protect policyholders against financial risks.
In contrast to discretionary mutuals, you are not required to move back and forth between underwriters, claims assessors, loss adjusters, or any other intermediaries, centralized party, or privileged users in order to get your claims reimbursement. There is no need to verify or analyze your claims. When a cover event happens, everyone who has cxTokens can claim them for an equal number of stablecoin payouts (minus fees). As long as one policyholder makes a claim that's successful, it's fine for everyone else to do the same.
The trigger or incident does not have to result in your financial loss under an index-based or parametric coverage model. In other words, if you think something will happen in the future, you may guess or forecast that it will happen. When an incident occurs, you do not need to provide any evidence, submit data or screenshots, or communicate with a special or privileged user to confirm that you were a victim of an incident and wait for a verdict.
If you have a cxToken with an expiry date greater than the incident date, you can claim your cxTokens for a USD stablecoin after the reporting period, if the resolution is in your favor. There is no time lag between submitting a claim and getting a payout. Furthermore, the amount you get is never a partial payment. Payouts will be made in full, less protocol fees.
The Neptune Mutual protocol can handle any cover situation because of the built-in consensus portal (reporting system). Even so, we're only going to focus on the smart contract and exchange coverage at first. The key reason is because of the platform's commercial and competitive advantages and potential.
Neptune Mutual vs Nexus Mutual Comparison#
| Topic | Neptune Mutual | Nexus Mutual |
| Protection Model |
Parametric Model |
Discretionary Model |
| Triggered By | Incident → Reporting | Claim → Assessment |
| Personally Identifiable Information | Not Collected | Collected |
| Proof of Loss Submission | No need | Required |
| Guaranteed Payout (On Positive Resolution) | Yes [See Cover Types] | No Guarantee |
| Token Name | NPM | NXM |
| Maximum Supply | 1,000,000,000 NPM | Unlimited |
| Supply Model | Deflationary | Inflationary |
| Resolution Achieved Via | Governance portal | Claims Assessor's Decision |
| Centralization Risk | Very low | Extremely high |
| Claims Process and Decision (On Positive Resolution) | Fast and immediate | Extremely slow and complex based on the discretion of claims assessors and their availability |
| Scalability | Highly Scalable. A single resolution will be applicable for everyone. | Less Scalable. Decision for each claim has to be individually assessed. |
| Liquidity Lock-Ins | No Lock-In | Yes. WNXM trading at 50-80% discount as liquidity providers bear the loss to exit their position. |
Footnotes#
Payout Guarantee#
Only dedicated cover pools have guaranteed payouts--with added risks as explained in our risk disclosure page.
Risk Factors#
Before using Neptune Mutual, we recommend that you read the Risk Factors and the remainder of this documentation.