Periodically, several portfolio cover protocols will issue their platform tokens to NPM holders through staking pools. These incentives are allocated ahead of time by third parties and distributed to the NPM community through the staking pool contract.
Understand the Risks#
Please read our standard risk disclaimer before proceeding. Furthermore, buying cryptocurrencies and staking your crypto assets in a smart contract is risky. Neptune Mutual is risky. There are no guaranteed returns at Neptune Mutual. We do not attach APR or predict the returns on the UI. The percentages displayed in the UI are based on best-case scenario settings which may never be achieved practically. Returns are not guaranteed. Neptune Mutual neither promises nor will be ever able to provide you with any assurances of returns.
As a result, we recommend that you withdraw your rewards on a regular basis.
Underwriting and Liquidation Risks#
Unlike most other DeFi insurance protocols, Neptune Mutual staking pools (as opposed to POD staking pools) are not subject to an underwriting requirement. That is, your staked NPM tokens will not be used to make claims payouts.
The NPM tokens and other assets locked in POD staking pools are not a part of the underwriting capital, and are therefore not exposed to pool liquidation in the event of an incident.
Slashing Risks: Neptune Mutual vs Competitors
Periodically Withdraw Rewards#
Please don't rely on the user interface's estimated staking reward percentage.
Due to the fact that the reward tokens are not minted but deposited in advance, they steadily decrease as and when NPM stakers withdraw their rewards. Please remember that if there are many users staking NPM tokens, the payouts may be exhausted quickly, leaving you with no rewards.
As a result, it is critical to withdraw rewards on a regular basis.