EA - Insurance against FTX clawbacks by Grant Demaree
The Nonlinear Library: EA Forum - A podcast by The Nonlinear Fund
Categories:
Link to original articleWelcome to The Nonlinear Library, where we use Text-to-Speech software to convert the best writing from the Rationalist and EA communities into audio. This is: Insurance against FTX clawbacks, published by Grant Demaree on November 23, 2022 on The Effective Altruism Forum.I've been reviewing funding requests as part of Nonlinear's effort to help FTXF grantees. Many applications sound like this:FTX Future Fund already paid me, so I have plenty of money. I can't spend any of it, since I'm worried about clawbacks. This leaves me practically destitute.Imagine you could buy insurance against these clawbacks:Amy has $20,000 in her bank account, but it's all from an FTX grantBill owns an insurance company. He believes the chance of a successful clawback is much less than 25%, and he charges Amy $5,000 for the insuranceNow Amy is comfortable spending her remaining $15,000. If a clawback happens, Bill pays her $20,000, and she's unharmedSeems like a win-win for Amy and Bill. Is there a way to make it happen?Thanks for listening. To help us out with The Nonlinear Library or to learn more, please visit nonlinear.org.
