# Chit funds

`kaal:entity:chit-funds`

**Status.** derived

This node is assembled mechanically from the 3 claims that carry the concept tag `chit-funds`. 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

3 claims across 1 works, 2021 to 2021.

**2021**

- [3782216-011](https://wulfkaal.github.io/claims/3782216-011) [design/argued] -- Applying Web3 technology to chit funds replaces the foremen and their commission with smart contracts, which eliminates the risk that a foreman absconds with the fund.
  > First, smart contracts replace the foremen and their d% commission, eliminating the risk of a foreman absconding with the fund.
  Craig Calcaterra, Wulf A. Kaal, Decentralized Finance (DeFi) (2021). SSRN: https://ssrn.com/abstract=3782216
- [3782216-012](https://wulfkaal.github.io/claims/3782216-012) [empirical/evidenced] *(failure mode)* -- Member default on premia is a major inefficiency in chit funds, with estimates that a large share of subscribers have defaulted at least once recently and a substantial share have defaulted after winning an auction.
  > It's been estimated that Td% of chit fund sub- scribers have defaulted at least once recently and 9e% have defaulted after winning an auction.
  Craig Calcaterra, Wulf A. Kaal, Decentralized Finance (DeFi) (2021). SSRN: https://ssrn.com/abstract=3782216
- [3782216-013](https://wulfkaal.github.io/claims/3782216-013) [condition/argued] -- A decentralized chit fund can let people bootstrap financial security with no initial reserve backing, but only if the reputation system is strong enough to hold defaults to a low percentage.
  > With no initial reserve backing, this allows people to bootstrap their way to greater financial security and stability, assuming the reputation system is sufficiently strong to guarantee a low percentage of defaults.
  Craig Calcaterra, Wulf A. Kaal, Decentralized Finance (DeFi) (2021). SSRN: https://ssrn.com/abstract=3782216

## 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/chit-funds.md | sha256sum

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