When the smart card goes bankrupt

In the land of probability,there is the possibility of failure to deliver secure digits according to contract.  The Lending Tree problem, the pit boss had no knowledge that some borrowers were running red for so long, they had failure to pay.

The standard S&L pit boss, under the trading pit framework,  will monitor the red/green history of borrowers, and  lenders, if specified under contract.  Hence, they can order, at least, their liabilities But, certainly, on failure to pay, the bankers will want the card shut, that will be programmed in.    

For the S&L pit boss, I have a hard time seeing a bank run threatening  more than 15% of the current balances. When deposits are exiting, it will produce a retroactive rate increase for depositors, the flow stops, and he retroactive rate increase for borrowers, the bankrupt are immediately identified.  Losses are limited when red/green are working, its a private warning one smart card can demand from another, under contract.

How do we let the bankruptcy judge handle the card?

OK the card complies, it shuts.  At court, who orders the card to spill the beans about where to find the secure digits? Ownership has been handed to a judge, but the judge can no more fiddle with the card then the judge can create gold.  The bankrupt human has his loot hidden, as if he buried his gold somewhere.

What to do? OK, a solution.  Smart cards know the typical liquidity shortages for bankruptcies, it therefore knows what quant it is in for the its own bankruptcy.  The bot knows this in secret, though good bankruptcy detectives can find it other ways.  The smart card knows it is bankrupt, we assume.

Here it is:
import tradingpit as Pit
Pit.boss = Coase
Pit.coin = Bankruptcard

The card will put its assets up for bid, and bid fairly according the to typical morality of bankrupt card holders, it has their typical sequence.  Creditors put in their ask.  Bankruptcy pit boss forces a complete tree, issues resolved, bit errors paid out, he bankrupt human and creditors get their Coasian share.