We need to establish policies and mechanisms for handling debt, payment failures, and insufficient funds scenarios. Currently, the system arbitrates based on proven epochs but lacks defined behavior for payment edge cases and failure modes.

Done Criteria

• Policy document defining debt handling approaches and risk tolerance
• Consensus on business rules for payment failure scenarios

Why Important

• Technical Architecture: Debt policies inform smart contract and monitoring system requirements

Notes

Deferred from M1. Design decisions will inform future contract enhancements and operational procedures.