Risk Disclaimer
Please read and understand these risks before participating in the stNXM protocol.
stNXM is a high-risk activity. By holding stNXM tokens, you are participating in underwriting DeFi coverage for various protocols. This activity carries significant financial risks that could result in partial or total loss of your funds.
Slashing Risk
Your staked NXM tokens can be slashed at any time if coverage claims are approved. When protocols covered by the Nexus Mutual system experience hacks, exploits, or other covered events, claims may be filed and approved, resulting in a reduction of the underlying NXM backing your stNXM tokens.
Price Volatility
The price of stNXM can fall significantly if hacks occur and coverage claims are made against protocols you are underwriting. The temporary slash mechanism may immediately reduce the value of your holdings when major incidents occur.
Coverage vs. Insurance
stNXM provides DeFi coverage, not insurance. Coverage decisions are made by Nexus Mutual's governance system and may not align with traditional insurance practices. Claims assessment and payout decisions are subject to community governance and may be unpredictable.
Smart Contract Risk
The stNXM protocol relies on smart contracts that may contain bugs, vulnerabilities, or design flaws. These could result in loss of funds, inability to withdraw, or other technical failures.
Liquidity Risk
While stNXM aims to provide liquidity, there may be periods where withdrawals are delayed or limited due to insufficient reserves or high demand. The 3-day withdrawal delay is designed to protect against immediate exits during coverage events.
Governance Risk
Changes to the Nexus Mutual protocol, staking parameters, or coverage terms could negatively impact the value or functionality of stNXM tokens. You have no direct control over these governance decisions.
Goat Safety, L.L.C., Ease, and all associated parties are NOT responsible for any losses you may incur from:
- Slashing events and coverage claim payouts
- Smart contract vulnerabilities or exploits
- Protocol hacks or security breaches
- Market volatility or price fluctuations
- Liquidity issues or withdrawal delays
- Regulatory changes or legal restrictions
- Technical failures or system downtime
- Any other losses related to your use of stNXM
By using stNXM, you acknowledge that you understand these risks and accept full responsibility for any losses that may occur.
Only invest what you can afford to lose completely. Consider consulting with financial and legal advisors before participating in DeFi coverage underwriting. Ensure you fully understand the mechanics of Nexus Mutual, coverage assessment, and the risks involved in liquid staking.
Last updated: July 29, 2025