Nicastrin functions as a substrate receptor within the γ-secretase complex. It helps in the recognition and binding of substrates that are to be cleaved by presenilin. This cleavage process is critical for the Notch signaling pathway, which is vital for cell differentiation, proliferation, and apoptosis. Additionally, the cleavage of APP by γ-secretase is linked to the generation of amyloid-beta peptides, which are implicated in the pathogenesis of Alzheimer's disease.