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On the contrary, you want your fund to cover unlucky situations. By linking the size of the insurance to a random number, you cancel out unlucky external events with a lucky internal event, thereby ensuring proper coverage.

So long as the random value is truly random. Were there lava lamps in the FTX server room?

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You don't cover "unlucky" with 'random numbers". You cover it with a detailed risk analysis.

Insurance companies have very detailed models on how much risk their customers provide, how much they're likely to cost, and charge accordingly.

They don't just go "yolo random(1,100)'l" and hope they're in business in 5 years.

Well, a random number covers nothing at all. Money covers risk, a number backed by nothing is nothing.

In this case, the random element was almost insignificantly small after a few days.

The fund size was 7500 * the trading volume since the fund was set up.

OP was joking

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