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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:
$AB * ((DP)/(DP+BA))$
where:
• AB = Account Balance
• DP = Deposits To Platform
• BA = Bankruptcy Amount