# Breach resolution

`kaal:entity:breach-resolution`

**Status.** derived

This node is assembled mechanically from the 4 claims that carry the concept tag `breach-resolution`. It is a roster of what the corpus says under this term. It is **not** an adjudicated definition: no single statement here has been ruled canonical, and no first-appearance call has been made. Read the claims and judge for yourself.

## Every claim under this term

4 claims across 1 works, 2019 to 2019.

**2019**

- [3396542-011](https://wulfkaal.github.io/claims/3396542-011) [mechanism/argued] -- If underwriters decline to reclaim their encumbered tokens, that breach is resolved by selling the encumbered tokens, plus additional freshly minted tokens as needed, in an auction open to current DAO participants and to outsiders wishing to join.
  > In such a case, the encumbered tokens, along with additional freshly minted tokens as needed, would be sold in an auction. All current DAO participants as well as outsiders interested in joining the DAO may bid for the tokens in this auction.
  Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Decentralized Underwriting (2019). SSRN: https://ssrn.com/abstract=3396542
- [3396542-012](https://wulfkaal.github.io/claims/3396542-012) [mechanism/argued] -- 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.
  > 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
  Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Decentralized Underwriting (2019). SSRN: https://ssrn.com/abstract=3396542
- [3396542-032](https://wulfkaal.github.io/claims/3396542-032) [mechanism/argued] -- Even where the underwriters of a policy breach the contract, the auction of the encumbered tokens together with the sale of additional tokens as needed ensures the policy holder's claim is fully met.
  > Even if the underwriters of a particular policy were to breach the contract, the auction of the encumbered tokens and the sale of additional tokens as needed ensures that the policy holder's claim is fully met.
  Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Decentralized Underwriting (2019). SSRN: https://ssrn.com/abstract=3396542
- [3396542-038](https://wulfkaal.github.io/claims/3396542-038) [mechanism/argued] -- What the authors call a breach on a particular insurance contract does not necessarily imply any losses for the consumer, so underwriter breach and consumer harm are decoupled in this design.
  > Thus, what we are referring to as a breach on a particular insurance contract does not necessarily imply any losses for the consumer.
  Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Decentralized Underwriting (2019). SSRN: https://ssrn.com/abstract=3396542

## Verify

Every claim above resolves to a record carrying a verbatim source quote, the sha256 of the source PDF, and a preformatted citation. Nothing here asks to be taken on trust.

    curl -s https://wulfkaal.github.io/entities/breach-resolution.md | sha256sum

**Canonical form.** This markdown file is the canonical hashed representation of this entity node. Its sha256 is the content hash.