Neptune Mutual
Other · Underwriting · NPM
Neptune Mutual runs parametric cover pools where payouts trigger when predefined on-chain conditions are met (e.g. protocol TVL drops beyond a threshold). NPM governs pool parameters and risk frameworks.
Parametric cover pools for on-chain loss events.
Protocol TVL
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Latest data · 15 min delay
Risks identified
- Oracle
Payouts depend on objectively resolving whether a predefined incident occurred. An incorrect, delayed or manipulated incident-resolution outcome (the parametric trigger) could deny valid claims or trigger unwarranted payouts.
- Governance
Under the interim Proof of Authority model the Neptune Mutual Association could pause the protocol and reverse incident-reporting decisions via emergency resolutions, concentrating significant discretionary power. OpenZeppelin also flagged that the protocol has a large number of very privileged roles requiring careful key management.
- Smart Contract
A complex 44-contract codebase with intricate storage and access-control patterns. Audits (OpenZeppelin, BlockSec, Hacken) found high-severity issues that were subsequently addressed, but residual smart-contract risk remains inherent.
- Reserve / Depeg
Cover pools are funded with stablecoin liquidity; the protocol's ability to pay claims depends on pooled reserves. OpenZeppelin flagged risk of insufficient liquidity when computing policy coverage commitments, and a stablecoin depeg would impair reserve value.
- Counterparty
Cover Creators are approved at the team's discretion and covers reference third-party protocols and exchanges; the value of a policy depends on the correct scoping of the covered counterparty and event.