> For the complete documentation index, see [llms.txt](https://armorfi.gitbook.io/armor/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://armorfi.gitbook.io/armor/faq-1/where-does-armors-cover-come-from.md).

# 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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