Escrowed principal is not a self-funding source of deterrence: any positive marginal effect away from the limit is financed by turnover and release surplus clearing carry plus the relevant unsanctioned recovery, and within long-lived delegation the instruments never invert dominance.
Source quote, verbatim
Principal is not a self-funding source of deterrence: any positive marginal effect is financed by turnover and release surplus clearing carry plus the relevant unsanctioned recovery, and within long-lived delegation the instruments never invert dominance.
From
Wulf A. Kaal, Refundable Stake Does Not Expand Deterrent Capacity in Long-Lived Delegation: Collateral, Premia, and Pseudonymous Markets (2026), 4 The premium principle and the main result, Corollary 1, p. 8 https://ssrn.com/abstract=7322599 · source PDF
Cite as
Wulf A. Kaal, Refundable Stake Does Not Expand Deterrent Capacity in Long-Lived Delegation: Collateral, Premia, and Pseudonymous Markets (2026). SSRN: https://ssrn.com/abstract=7322599
Holds when
turnover-funded admission conditions away from the long-match limit
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