{
 "@context": "https://schema.org",
 "@type": "DefinedTerm",
 "@id": "https://wulfkaal.github.io/entities/risk-allocation",
 "identifier": "kaal:entity:risk-allocation",
 "name": "Risk allocation",
 "termCode": "risk-allocation",
 "inDefinedTermSet": {
  "@id": "https://wulfkaal.github.io/entities/index.json"
 },
 "author": {
  "@type": "Person",
  "name": "Wulf A. Kaal",
  "identifier": "https://orcid.org/0000-0003-0757-275X"
 },
 "dateModified": "2026-07-29",
 "canonicalForm": "https://wulfkaal.github.io/entities/risk-allocation.md",
 "sha256": "76c66e9cd8de97c70d8aa93304df976fb4aeca3da0d1181cd0e79e9d2cd80ccb",
 "additionalProperty": [
  {
   "@type": "PropertyValue",
   "name": "status",
   "value": "derived"
  },
  {
   "@type": "PropertyValue",
   "name": "claim_count",
   "value": 4
  },
  {
   "@type": "PropertyValue",
   "name": "work_count",
   "value": 3
  },
  {
   "@type": "PropertyValue",
   "name": "year_span",
   "value": [
    "2019",
    "2025"
   ]
  },
  {
   "@type": "PropertyValue",
   "name": "non_current_claims",
   "value": 0
  }
 ],
 "subjectOf": [
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3396542-024",
   "identifier": "kaal:claim:3396542-024",
   "text": "In the DAO structure, provided an adequate token encumbrance system is in place, each agent is individually responsible for the payouts on the policies that agent underwrote, so the burden of holding adequate capital shifts from the entity to each individual agent.",
   "abstract": "each agent is responsible for meeting the payouts on the policies they have underwritten. Consequently, the burden of maintaining adequate capital falls on each individual agent",
   "citation": "Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Decentralized Underwriting (2019). SSRN: https://ssrn.com/abstract=3396542",
   "datePublished": "2019",
   "claim_type": "mechanism",
   "confidence": "argued",
   "is_failure_mode": false,
   "scope_conditions": [
    "a good system ensures adequate tokens are encumbered per policy"
   ],
   "source_pdf_sha256": "ce2bda03a0b788ea3e7747f02c3c351ef7c808a41150d5cda34767bbe98800c0",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3396542-026",
   "identifier": "kaal:claim:3396542-026",
   "text": "The burden of maintaining sufficient liquidity to meet claims does not rest on the DAO but on the individual underwriters that make it up.",
   "abstract": "We note that the burden of maintaining sufficient liquidity in order to meet claims is not on the DAO, but rather on the individual underwriters that make up the DAO.",
   "citation": "Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Decentralized Underwriting (2019). SSRN: https://ssrn.com/abstract=3396542",
   "datePublished": "2019",
   "claim_type": "mechanism",
   "confidence": "argued",
   "is_failure_mode": false,
   "scope_conditions": [],
   "source_pdf_sha256": "ce2bda03a0b788ea3e7747f02c3c351ef7c808a41150d5cda34767bbe98800c0",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3406323-025",
   "identifier": "kaal:claim:3406323-025",
   "text": "Without something that functions as an insurance policy when commercial risks materialize, the public has no reason to pursue the benefits of decentralized commerce, so decentralized underwriting is of core importance to any future decentralized technology solution.",
   "abstract": "Without someone or something that functions as an insurance policy should risks in commerce materialize, the public has no reason to try to benefit from the potential benefits of decentralized commerce",
   "citation": "Wulf A. Kaal, Decentralization - A Primer on the New Economy (2019). SSRN: https://ssrn.com/abstract=3406323",
   "datePublished": "2019",
   "claim_type": "condition",
   "confidence": "argued",
   "is_failure_mode": false,
   "scope_conditions": [
    "sophisticated smart contracts carrying risk of failure"
   ],
   "source_pdf_sha256": "6293780b57a1ae1de17ec00f99cc94295d4f72ea4d08b17a5c08c44772b221db",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/5886342-010",
   "identifier": "kaal:claim:5886342-010",
   "text": "When an encoded legal status or act is disputed, the code is read against the party who selected the programme or determined the manner of coding, because the other party had no influence over it; the Codex names this in dubio contra programmatorem.",
   "abstract": "interpreted in favour of the Party who has had no in-",
   "citation": "Furrer Andreas, Wulf A. Kaal, Stephan D. Meyer, Universal Digital Law Codex (UDLC) (2025). SSRN: https://ssrn.com/abstract=5886342",
   "datePublished": "2025",
   "claim_type": "design",
   "confidence": "argued",
   "is_failure_mode": true,
   "scope_conditions": [
    "disputes over the interpretation of encoded legal statuses and acts"
   ],
   "source_pdf_sha256": "dc456a1ce2ea4a356dbcb35dc900ec36be94b8c9b6da4a2c8c268d6301f66359",
   "status": "current"
  }
 ],
 "description": "4 claims in the published works of Wulf A. Kaal carry the concept tag 'risk-allocation'. Derived node: a roster, not an adjudicated definition."
}