Deep diving into Buffer pools

Here are some key takeaways from the report

• Project-specific risk assessments vary considerably across registries, meaning buffer pool contributions may not always match the risk profile of the project.

• How the risk buffer is practically used in the case of reversals varies across registries and is not always clear from public disclosures.

• Market participants need more sophisticated tools that better model risks and match the payouts to the losses in case of any reversal events.