Nexus Mutual is a risk-sharing platform that secures risk and potential bugs in smart contract code. Unlike insurance companies， Nexus Mutual is run entirely by its members. Only members can decide which claims are valid. All member decisions are recorded and enforced by smart contracts on the Ethereum public blockchain. Members can buy cover to protect against material losses when transferring funds into a protocol’s smart contracts or keeping funds with a custodian.
Nexus Mutual is a discretionary mutual. Each member can hold $NXM tokens, which represent proportional ownership of the mutual. The mutual runs on the Ethereum blockchain. The $NXM token represents membership rights in the mutual, with all members owning the mutual together in proportion to their individual $NXM holdings. It runs on a bonding curve which is a mathematical curve that defines the relationship between price and token supply. It can only be bought and sold through the Nexus Mutual application. Only members of Nexus Mutual can hold $NXM tokens.