Insurance coverage active
Frax Finance's assessment for RD-F-089 — scored red on the v1.7.0 rubric. The evidence below is the curator's reasoning for this score.
Evidence summary #
At $298.58M aggregate TVS, no meaningful protocol-level insurance exists. Nexus Mutual offers two limited covers: (1) Fraxlend Protocol Cover (added April 2024) for smart contract risk, oracle failure, and severe liquidation failure on Fraxlend specifically — cover capacity not specified in available sources but Nexus covers are typically capped well below protocol TVL; (2) Frax frxUSD Depeg Cover (Product #318, added September 2, 2025) covering frxUSD depeg events ≥10% for 7+ consecutive days. Neither constitutes protocol-wide coverage at a scale meaningful relative to $298M TVS. No Immunefi-hosted or Sherlock cover program exists for the Frax stack. The protocol's own bug bounty ($10M theoretical max) is not insurance. Red: no active insurance coverage sufficient relative to TVS.
Sources #
- DocsBug Bounty — Frax Finance DocsFrax bug bounty page — max payout $10M theoretical; self-hosted, not insuranceretrieved 2026-05-17
- Insurance on Nexus — Frax Finance GovernanceFrax governance forum — Insurance on Nexus discussion (Fraxlend Protocol Cover added April 2024)retrieved 2026-05-17
- 20+ New Cover Listings — Nexus MutualNexus Mutual blog — 20+ new cover listings including frxUSD Depeg Cover (Product #318, September 2, 2025)retrieved 2026-05-17
Methodology #
Determine whether active coverage on Nexus Mutual, Unslashed, Sherlock, or equivalent is in force; record cover size in USD.
See the full factor methodology and distribution across all protocols →