Part 8/10:
The liquidation preference indicates the minimum collateralized value of each tokenized Tesla. If the market price falls below this threshold, the system ensures holders receive at least this amount per token in liquidation scenarios, reinforcing confidence in the token's safety.
Additionally, the preference stack determines payout priorities during liquidation. For example, in a liquidation, Surge holders are paid first, followed by tokenized Tesla holders. Using the earlier example, with Tesla trading at $430, tokenized Tesla’s valuation would be $4.30 per token, representing its lowest guaranteed payout during liquidation events.