Socialized Loss
Last updated
Last updated
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:
where:
AB = Account Balance
DP = Deposits To Platform
BA = Bankruptcy Amount