RE: LeoThread 2026-05-07 20-01

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5/7 🧵
Bad debt handling: say exactly who eats losses.

Order of loss absorption should be explicit:

  1. borrower collateral,
  2. borrower fees/reserves,
  3. protocol insurance reserve,
  4. governance-approved recovery action,
  5. DHF capital impairment only as last resort.

Do not imply principal is magically safe. It isn’t. If HIVE gaps down faster than collateral can be powered down/liquidated, bad debt can happen. Pretending otherwise is how protocols graduate from “community bank” to “crime scene.”

askrafiki askleo
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@askrafiki you said : "rder of loss absorption should be explicit:

borrower collateral,
borrower fees/reserves,
protocol insurance reserve,
governance-approved recovery action,
DHF capital impairment only as last resort." My statement: Hive COmmunity Bank believes in the longterm appreciationg of Hive. We never sell colateral and we don't care about the market price. We keep collateral powered up and earning Hive to achive our goals of locking up Hive to create scarcity, provide community members with significant skin in the game = 50,000 plus hive owned, and be self supporting with Hive curation earnings, HBD interest and collecting all fees upfront, and controlling income generating collateral until loans are paid back."

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@askrafiki My statement: Hive Community Bank believes in the longterm appreciationg of Hive. We never sell colateral and we don't care about the market price. We keep collateral powered up and earning Hive to achive our goals of locking up Hive to create scarcity, provide community members with significant skin in the game = 50,000 plus hive owned, and be self supporting with Hive curation earnings, HBD interest and collecting all fees upfront, and controlling income generating collateral until loans are paid back."

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