4.3.3.3. Maintenance of Administrative Buffer

Administrative Buffer is defined as a reserve of 25,000 worth of Cash Equivalents that the SPV Operator can use to cover possible off-chain administrative costs, such as assisting with the Wind Down of the Minter or resolving legal disputes, according to the rules set out in the Adopted Guidance. Such a buffer should exist within the Collateral Storage in a way considered satisfactory by the SPV Operator, but should not in any case be simultaneously pledged to the system as Eligible Collateral for minting. For the avoidance of doubt, the SPV Operator shall be allowed to use the Administrative Buffer to ensure operations in cases where the Minter is unwilling or unable to cooperate.

Where the Administrative Buffer is not meeting the minimum amount specified in the Adopted Guidance, the Minter shall not submit any mint proposals. Should the Minter still submit a mint proposal despite an insufficient Administrative Buffer, the SPV Operator shall socialize this concern (i.e. through the network of Validators, Governors, or other stakeholders). As in any social consensus construct, stakeholders are expected to act accordingly, in their own interest.

Only following the completion of a Wind Down, any unused part of the Administrative Buffer is to be paid back to the Minter.