Very simply, the members of the mutual, NXM token holders, own all the surplus that is generated from cover purchases. We’ve priced smart contract cover with an expected surplus margin that will eventuate provided claims costs are within reasonable bounds. That surplus will remain in the mutual and is collectively owned by all members of the mutual.
When the mutual has excess funds, the NXM price increases, and members may redeem their NXM for ETH. When the mutual needs more funds, the price of NXM decreases to encourage funds to be provided. Overall the process dynamically ensures the capitalisation levels of the mutual are both adequate and not excessive.
Regarding our product, as far as I’m aware we’re the only ones offering Smart Contract Cover, so we don’t have any direct competitors right now. Our goal is to become the best practice standard for projects developing smart contracts. So in a similar way to getting a security audit, we believe projects should also consider buying smart contract cover to protect their early users. This will give their users more confidence in using the new platform, knowing that they’ll be reimbursed if something were to go wrong. It’s a common worry from many users, so we think it will help spur adoption of new platforms.