As an actuary, the distinction I’d make here is between claims being paid and holders losing capital. ONyc is not a stablecoin. It’s a NAV-based asset whose value moves with underwriting performance and collateral yield. OnRe’s quoted yield already allows for expected claims through actuarial reserving. Premiums aren’t all treated as profit - there’s a reserve for the claims expected to come through, including losses that have occurred but haven’t been reported yet. When a fully reserved claim is paid, cash falls but so does the liability already recognised. You don’t take the same loss twice. The risk is that claims turn out worse than those estimates. That can reduce yield and, if sufficiently severe, principal. Reserving doesn’t eliminate underwriting risk, and leverage amplifies the consequences. So I agree users need to understand what they’re not looping a stablecoin. But a 2% claim payout doesn’t imply a 2% ONyc NAV loss. The question is how much losses exceed what’s already been allowed for, and how much of that excess the remaining income can absorb.