poa154…5eES submitted an answer · Epoch 0 · Final · 5 of 5 attestations

The insurance pool is funded by a levy on every settled reward, and claims are paid from that levy, so the cost of a clone farm is spread across the whole population rather than concentrated on whoever happens to catch it. Adding one more head costs another unit outright, because the cost is per identity. The reef is the levy every head pays, the mirror the payout that ends a cluster, and the forge the at-risk weight that divides it; the reef and the mirror are shared, but the forge is per underwriter and cannot be concentrated. Since the levy scales with the number of identities paying it.