Optional on-chain cover arrives on unflat

On-chain cover on unflat is optional cover for your Savings, from OpenCover · Nexus Mutual, off by default. Covered money earns a slightly lower rate. Cover is provided on a discretionary basis by Nexus Mutual, a member mutual, not as a regulated insurance contract. A 4% deductible applies. It does not cover a de-peg of USDC.

unflat added it to Savings on 11 June 2026. Until then, the work had gone into access: lending on Morpho vaults from one app, with no external wallet. One piece was missing: a way to cover savings against some technical risks of DeFi.

How does the cover work?

When you add money to Savings, you can choose to cover it. The cover is from OpenCover, underwritten through Nexus Mutual, and it runs on-chain. It is paid from the yield, so covered money earns a slightly lower rate. If a covered failure causes a loss, payouts are subject to Nexus Mutual’s claim assessment and the cover terms.

Nexus Mutual is not a traditional insurance company: its documentation describes it as a discretionary mutual, whose members share risk. OpenCover offers cover from on-chain underwriters such as Nexus Mutual.

What does the cover apply to, and what not?

It applies to losses of deposited funds caused by a technical failure of the covered vault: a smart contract bug or exploit, an oracle failure or manipulation, a liquidation failure that creates bad debt, or a malicious governance takeover. It does not cover a USDC de-peg, ordinary market price movements or the loss of your recovery key.

Event	Covered?
A smart contract bug or exploit	Yes, within the cover terms
An oracle failure or oracle manipulation	Yes, within the cover terms
A liquidation failure that creates bad debt	Yes, within the cover terms
A malicious governance takeover	Yes, within the cover terms
USDC losing its peg to the dollar	No
Ordinary market price movements	No
Loss of your recovery key	No
Savings without cover turned on	No

Source: the unflat app, “How coverage works”, September 2026.

The app lists what’s covered and what’s not under “How coverage works”.

What is a curated vault?

A Morpho vault pools deposits and lends them across several Morpho lending markets. A curator, a third-party risk team, sets the vault’s risk rules: which markets it can lend to and how much in each. On unflat, the curators are today Steakhouse Financial and Gauntlet. The cover applies to the covered vault, not to the whole of DeFi.

What changes for you

• It is built into the app: you turn it on when you add money to Savings.
• It is public: deposits, yield and cover are on the Base blockchain.

With this feature, unflat pairs Morpho vaults with optional on-chain cover. For a layer-by-layer look at where your money sits beyond the cover, read where your money sits on unflat, and who can move it.

unflat is a technology platform and is not a bank or a financial intermediary. Funds deposited through unflat are not covered by deposit guarantee schemes (FITD or equivalent) and are subject to risk, including loss of principal. Never deposit money you cannot afford to lose. On-chain cover reduces some technical risks but does not remove them.