Validators

Validators make final approval decisions

These are randomly(weighted by each’s reputation) chosen managers who act as final gatekeepers for an instrument’s approval. Their primary goal is to

a) identify the risk of the potential instrument at a systemic level (ensure low correlation among existing instruments)

b) identify any malicious behavior (such as collusion with managers and utilizers).

These validators are required to hold/lock their VT(such that they are exposed to the pooled risk) and purchase longZCB at a discount to mark price to make the final approval decision.