Worked examples
Calculate collateral, reward allocation, and a scoring result with explicit assumptions.
Collateral for a $20M portfolio
Assume one role carries $20M of outstanding notional. Apply the verified marginal tiers:
| Band | Calculation | Required collateral |
|---|---|---|
| First $1M | $1M × 5% | $50,000 |
| Next $9M | $9M × 3.5% | $315,000 |
| Remaining $10M | $10M × 2.5% | $250,000 |
| Total | Sum of the three bands | $615,000 |
At an illustrative oracle price of $0.25 per ASSET, the requirement is 2,460,000 ASSET. This price is an assumption, not a current quote. An operator posting exactly that amount begins at 100% collateral health before reservations or other restrictions.
If price falls to $0.20, the same stake is worth $492,000, or 80% of the requirement. Under the ordinary health thresholds it becomes degraded. Restoring 100% requires another $123,000, equivalent to 615,000 ASSET at that price. SV top-up grace can affect the reported state; raw collateral coverage remains 80%.
One reward epoch
Assume an illustrative, fully funded epoch slice of 9,000 ASSET, no carryover or rounding residue, all three role floors active, and no eligibility reductions. Each role has at least three qualifying validators and $5M notional. This is an allocation example, not the promised slice for the current three-hour epoch.
Each role first receives its 20% floor: 1,800 ASSET. That leaves 3,600 ASSET to divide by effective weight. Suppose total effective weights are 180,000 for TV, 90,000 for SV, and 90,000 for IV:
| Role | Floor | Share of remaining pool | Total |
|---|---|---|---|
| TV | 1,800 | 1,800 (50%) | 3,600 |
| SV | 1,800 | 900 (25%) | 2,700 |
| IV | 1,800 | 900 (25%) | 2,700 |
Within TV, consider an operator with $100,000 posted stake value, weighted stake age A = 12 months, N = 50 distinct assets served, and n = 1 counted offence in the trailing 12 months:
- Age multiplier:
A / (A + 12) = 0.5. - Experience multiplier:
1 + 2N / (N + 50) = 2. - Reputation multiplier:
max(0.5, 1 − 0.1n) = 0.9. - Weight before eligibility gates:
100,000 × 0.5 × 2 × 0.9 = 90,000.
Assuming this operator is eligible and the two other TV weights are 45,000 each, its share is 50% × 3,600 = 1,800 ASSET. Treasury-backed positions can split an account's accrual further. Actual calculation uses fixed-point arithmetic, snapshots, eligibility gates, and funding checks; read Rewards.
One Brier evaluation
Assume 100 eligible assets, all predicted at 10% probability of default, and 30 observed defaults within the defined outcome horizon. Each asset has an in-scope scheduled payment, and the evaluation time has arrived.
- Observed score:
(30 × 0.9² + 70 × 0.1²) / 100 = 0.25. - Expected score:
0.1 × 0.9 = 0.09. - Implemented standard error:
sqrt(0.09 × (1 − 0.09) / 100) ≈ 0.028618. - With multiplier 2, the threshold is
0.09 + 2 × 0.028618 ≈ 0.147236.
Because 0.25 exceeds 0.147236, the evaluation reports a breach and enters the provisional penalty process. This uses the protocol's implemented standard-error formula. It is not a claim that every statistical calibration method uses that formula.
A sample below the configured minimum of 30 would be skipped rather than counted as successful calibration. Assets without an in-scope payment are excluded. See Scoring Validator for outcome timing and Penalties and disputes for what follows a breach.