Make BTC devaluation recourse for signers clear
@@ -57,14 +57,18 @@ of ETH crosses a security threshold, open `Deposit` s will enter
This threshold will be determined by the contract owner.
If the value of BTC drops precipitously, signers won't make the return on their
-bonded capital that they'd hoped- as <<Custodial Fees>> are denominated in tBTC.
+bonded capital that they'd hoped- as <<Custodial Fees>> are denominated in TBTC.
This doesn't pose a problem for tBTC reserves, but is expensive to signers,
lessening their value proposition.
-// TODO insert a little historical analysis for a decent starting number
+At a certain threshold, a `Deposit` whose BTC collateral has devalued will move
+into a variant of the <<preliq, pre-liquidation>> phase that allows bond
+rebalancing without the fallback of signer bond forfeiture.
This threshold will also be determined by the contract owner.
+// TODO insert a little historical analysis for a decent starting number
+
== A resilient price feed
Unlike popular synthetic stablecoin schemes, the tBTC system design makes no
@@ -85,6 +89,7 @@ based on MakerDAO's https://developer.makerdao.com/feeds/[Medianizer].
// TODO initially parameters will be set by contract owners
=== Pre-liquidation: the "danger zone"
+[[preliq]]
At the first threshold, a `Deposit` enters pre-liquidation.
