web3/concepts/mutualization.md

Mutualization

In finance, the mutualization of risk is the process of dividing up exposure to potential risk or financial losses among many or all shareholders in a financial structure.

See also deposit insurance and bank run.

References

1. Roche, Cullen O. 2011. ‘Understanding the Modern Monetary System’. http://ssrn.com/paper=1905625.