Socialized Loss

If both the liquidation process and insurance fund fail to cover over-bankruptcy, losses will be shared across depositors in the Zeta platform.

This will be implemented by applying an over-bankruptcy ratio to withdrawals ensuring that the platform has sufficient capital to continue operating. Withdrawals will be subject to the below ratio:

ABāˆ—((DP)/(DP+BA)) AB * ((DP)/(DP+BA))


  • AB = Account Balance

  • DP = Deposits To Platform

  • BA = Bankruptcy Amount

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