CHALLENGE 06 · INTERACTIVE SIMULATION
The token survives. What can the holder recover?
Put a fictional $5m holder claim through a recovery waterfall. Change the claim structure and see who receives the remaining proceeds.
Scenario levers
Fixed holder claim: $5m. The three presets represent different hypothetical capital structures, not legal conclusions about a real token or jurisdiction.
From token to recovery
Token holder
$5m claim
Legal structure
Senior position
Asset proceeds
$7.00m
Holder’s modeled recovery
100.0%
of the $5m claim
after 18 months
The same token balance can lead to different recoveries. Under this senior-claim assumption, holders receive $5.00m after modeled costs and priority claims. A longer wait does not change this nominal arithmetic.
Apply a shock
No shock applied. Adjust a lever to explore the relationship.
Assumed, not established
The selected claim priority must actually exist and be enforceable. This model cannot determine legal ownership or recovery rights.
Scenario versus baseline
Baselines stay fixed at the starting settings with no shock, so every change you make is measured against the same reference.
Nominal holder payout
$5.00m
Baseline $5.00m
Unrecovered claim
$0.00m
Baseline $0.00m
Time to distribution
18 mo
Baseline 18 mo
Model notes and assumptions
Assumptions: $10m starting asset and $5m holder claim. Recovery costs are a percentage of starting value and paid before modeled creditors. Net estate is gross proceeds less costs, floored at zero. Three independent, hypothetical structures illustrate priority.
Senior: min($5m, net estate). Unsecured: $3m senior claims first, then pro rata with $2m other unsecured claims, capped at $5m. Residual: $7m other claims first, capped at $5m.
Asset impairment reduces proceeds by 25 percentage points of starting value, floored at zero. A dispute adds 24 months, capped at 60. Time affects access to recovery, not nominal payout: discounting and additional time-related costs are deliberately excluded. Real title, security perfection, custody, insolvency treatment and enforcement must be established from actual documents and applicable law.
Research basis: “RWA Tokenization Market Hurdles,” the research report reproduced on the overview page. This lab translates its qualitative themes into teaching scenarios; it does not treat the report’s market statistics or case-study claims as verified model coefficients. The operational chapter is split into liquidity and data freshness; regulation and expertise are combined in one explainer so all six research themes remain covered.
Reading the results: Inputs and shock magnitudes are illustrative assumptions. Outputs are arithmetic under those assumptions. Baselines are the initial input settings with no shock. No overall risk score, probability of loss, investment recommendation or legal determination is produced.