# Risk isolation

`kaal:entity:risk-isolation`

**Status.** derived

This node is assembled mechanically from the 2 claims that carry the concept tag `risk-isolation`. 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

2 claims across 1 works, 2019 to 2019.

**2019**

- [3396542-031](https://wulfkaal.github.io/claims/3396542-031) [mechanism/argued] -- In the proposed design, bad business decisions by one underwriter need not impact other underwriters or the DAO, because losses from underestimating the insured risk fall purely on that underwriter so long as the staked tokens cover the claim.
  > If a certain underwriter makes the mistake of underestimating the risk of the insured event, the losses will be suffered purely by the underwriter as long as the value of the staked or encumbered tokens covers the claim.
  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/risk-isolation.md | sha256sum

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