A breach occurs only when the underwriters concerned believe that the value of their encumbered tokens is less than the payment they would have to make in order to reclaim those tokens.
Source quote, verbatim
Under what circumstances would a breach occur? It would occur only if the underwriters concerned believed that the value of these tokens is less than the payment they need to make in order to reclaim the tokens.
From
Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Decentralized Underwriting (2019), II. The Design of the Underwriting DAO, p. 6 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
restated_bykaal:claim:3782216-017 In the Underwriting DAO a breach occurs only when the market values the encumbered reputation tokens at less t...
Verify
The quote above is an exact substring of the source PDF, whose sha256 is ce2bda03a0b788ea3e7747f02c3c351ef7c808a41150d5cda34767bbe98800c0. Extraction method: pdf-text-layer. Attestation record: colloquium/attestations/7a66a8b482326108...json Verify the binding yourself: curl -s https://wulfkaal.github.io/claims/3396542-013.md | sha256sum