# kaal:claim:3396542-014

**Claim.** Breach by underwriters will in general happen only after a dramatic shift in the DAO's future prospects, such as a sharp decrease in expected future revenues or a sharp increase in expected payments on outstanding policies.

**Type.** failure  **Support.** argued

**Holds when.**

- dramatic shift in the DAO's future prospects

**Source quote.**

> In general, this will happen only if there is a dramatic shift in the future prospects of the DAO, such as a sharp decrease in expected future revenues or a sharp increase in expected payments on outstanding policies.

**From.** Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, *Decentralized Underwriting* (2019), II. The Design of the Underwriting DAO, page 6

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

**Verify.** sha256 of source PDF `ce2bda03a0b788ea3e7747f02c3c351ef7c808a41150d5cda34767bbe98800c0` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Calcaterra%20et%20al.%20-%202019%20-%20Decentralized%20Underwriting.pdf

**Failure mode.** Breach triggered by shift in DAO prospects  (family: agency-cost-and-managerial-opportunism)

**Topics.** law-and-legal-systems, dao

**Keywords.** breach-conditions, revenue-shock, liability-shock, dao-design

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