entity · derived

Insolvency

3 claims across 1 works, 2019–2019.

Derived node: assembled mechanically from the claims carrying insolvency. A roster, not an adjudicated definition.

Every claim under this term

• 3396542-021 2019 condition: The DAO is insolvent when the present value of expected cash flows from new policies falls below the expected cash outflow on currently outstanding policies, and in that state the value of a token is
• 3396542-022 2019 failure: A sufficiently large negative shock to the number of policies issued per period drives the value of the DAO negative and renders the DAO insolvent, so falling new business volume is a principal insolv
• 3396542-023 2019 failure: Raising the margin is the available remedy for an insolvency shock, but it is not a clean fix because the effect of a higher margin on future demand must itself be considered.

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