Ok, now we are getting somewhere. So the problem after all is that our current way of re-balancing liquidity can pose risks to DR collateral.
That is an argument I agree with, and why I proposed a demand based liquidity formula while our discussion.
I will continue the discussion on the DR topic, since NuSafe risk comparison is finished now.
I am not saying that It will actually happen, or that you will default Nu on purpose, but I am not comfortable with a single person having that big of a responsibility/opportunity.
In the event of BKS going down half to 3$, (even if it is successful as a exchange, but other issue arise) which chances are real, as no one can predict the market, you will literally have the option to fail Nu for 7200$.
It is not that “much” money anyway, but It could explain to some degree why are you taking a exchange risk that we have the only option to see as “suicidal”.