Armor
  • Armor.fi Living Documentation
  • Disclaimer / Terms
  • Roadmap
  • ArCore: Features and Highlights
    • A True Smart Cover Solution
      • Pay As You Grow and Only Pay What You Owe
      • Simplified Payments
      • KYC-less and Permissionless
    • Coverage Solutions Aggregator
    • Rewarding Governance
  • Products: ARMOR V1 Suite
    • Ecosystem Summary
      • Rewards Summary
      • Model Constants
    • arNXM: Yield Vault
      • Armor Treasury Reserve
      • Staking Guide
    • arNFT: Tokenized Coverage
      • Staking Guide
    • arCore: Smart Cover System
      • Covered Protocols
    • ArmorDAO: Hybrid Decentralization
  • Armor V2 Suite
    • vArmor Vault
    • arShield: Armored Shield Vaults
      • Staking Guide
  • arPro
  • BSC integration
  • $ARMOR Token
    • Tokenomics
    • Functions and Governance
    • Revenue Model
    • Aligned Incentives
    • Liquidity and User Rewards
      • Launch Schedule
      • Rewards Allocations
    • Risks Breakdown
  • FAQ
    • What is Armor?
    • Why Do I Need Armor?
    • How Does Armor Provide Cover?
    • What is arNFT?
    • What is arNXM?
    • How Do I Buy Armor Cover?
    • How Do I Sell Armor Cover?
    • Competitive Differences
  • Community Resources
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      • Immunefi Bug Bounty
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  1. FAQ

How Does Armor Provide Cover?

All of Armor's cover is underwritten by Nexus Mutual.

Armor utilizes arNFTs (non-fungible, transferable tokens that represent cover of a certain amount on a certain protocol for a certain length of time) which are created through purchase of Nexus Mutual cover.

Stakers mint and stake arNFTs to provide coverage against protocol contracts and earn staking rewards. Staked arNFTs are pooled and coverage is brokered to end users through an automated Smart Cover System with easy on-demand coverage premiums billed by the second.

Rewards are earned by charging the coverage seekers a premium on the insurance coverage cost.

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Last updated 4 years ago