kaal:claim:3396542-012

A breach by the underwriters of a policy does not amount to a default by the DAO, and under normal market conditions a well designed DAO should experience very few breaches if any.

Source quote, verbatim

Note that a breach by underwriters on a policy does not imply a default by the DAO. Under normal market conditions, a well-designed DAO should experience very few breaches, if any

From

Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Decentralized Underwriting (2019), II. The Design of the Underwriting DAO, p. 5
https://ssrn.com/abstract=3396542 · source PDF

Cite as

Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Decentralized Underwriting (2019). SSRN: https://ssrn.com/abstract=3396542

Holds when

normal market conditions
well designed DAO

Classification

mechanismsupport: arguedsystemic-riskrisk-and-incentivesdao

Verify

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