Should we pay 10 ETH from the Community Fund to compensate the affected member who submitted Claim 102?

After the CREAM V1 exploit, a total of five claims were filed with Nexus Mutual. Of the five, four were approved for a pay out because they met the qualifications for a successful claim payout. The member who filed Claim 102 did experience a genuine loss of funds after the CREAM V1 exploit occurred; however, the cover amount for Claim 102 is 500 ETH and the loss of funds totaled ~10 ETH. With Protocol Cover, there is a 20% or greater loss required listed under the “Material” entry in the cover wording.

At this time, Nexus Mutual is unable to pay partial claims. When claims are decided, it is a “yes” or “no” choice, so approving this claim would mean paying out 500 ETH for a ~10 ETH loss. A “no” vote would mean denying the claim and not providing a pay out.

The Nexus V2 updates will allow for partial claims to be paid when a loss of funds occurs. These updates are the main focus of the development team, and the functionality to pay partial claims will be available in the near future.

As Claims Assessors, members of the mutual have the power to exercise discretion.

The Nexus Mutant community has discussed paying the affected member for their loss of funds using assets from the Community Fund (i.e., the treasury). This would not result in CREAM V1 Risk Assessors having their staked NXM burned. It would require the mutual to sell Community Fund assets to acquire 10 ETH to facilitate this claim pay out.

Members who receive a claim pay out have already agreed to give the rights to any future compensation from the CREAM V1 team to the mutual, so if repayment does occur, those funds would be held in the Community Fund.

Ultimately, the decision to compensate this affected user for their loss of funds using assets from the Community Fund must be decided by members of the mutual.

You can review the details of Claim 102 to inform your decision. You can review the discussion about Claim 102 in the Claims Discussion channel in Discord.

Should the Nexus Mutant community compensate the affected member who filed Claim 102 for their loss using assets from the Community Fund (i.e., treasury)?