Cap cUSD depeg cover: covered risks and exclusions
Looking to protect yourself against protocol failures? Here is what your depeg cover includes and doesn't — in plain English.
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This is a summary of covered losses and exclusions for depeg cover provided by Nexus Mutual through OpenCover. Ensure you read and understand the full cover wording here (Part C) and annex before purchase.
What is covered
If Cap cUSD suffers a depeg of 10% or more for 7 consecutive days, cUSD (or equivalent in approved derivatives: stcUSD, Pendle PT Tokens and Spectra PT Tokens) can be redeemed for 0.975 USDC.
Important note: the cover must be held for at least 72 hours before the depeg event to be valid.
What is not covered
Financial losses that result from any of the below are not covered:
- Depeg of any asset other than the Covered Token (cUSD).
- Covered Tokens (cUSD), or an equivalent in any Approved Covered Token Derivative (stcUSD, Pendle PT Tokens and Spectra PT Token) held for less than 72 hours prior to the beginning of the depeg.
- Any smart contract or other technical issue related to the Covered Token (cUSD) or any Approved Covered Token Derivative (stcUSD, Pendle PT Tokens and Spectra PT Token) unless that specifically results in the depeg of the Covered Token.
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