Risk Controls and Go/No-Go

Objective

Convert the revalidated economics into practical downside protection rules.

Critical risks

1. Rate risk - realized net EUR/GPU-h drops below financeable level.
2. Utilization risk - occupancy remains below target for multiple months.
3. Hardware risk - outage or failure creates prolonged revenue interruption.
4. Contract risk - personal guarantees or unfavorable default clauses.

Mandatory controls before signature

• Entity setup with limited liability (UG/GmbH path).
• Insurance active from day one.
• Contract terms reviewed for:
• Early termination
• Default and cure periods
• Replacement hardware obligations
• Buyout calculation transparency
• Personal guarantee caps or removal
• Internal reserve funded for at least 6 months fixed load.

Operating stop-loss framework

Track monthly:

• Realized net EUR/GPU-h
• Utilization
• Net cashflow after financing

Triggers:

• Warning: 2-month net below -200 EUR/month
• Stop-loss: 2-month net below -400 EUR/month

Actions at stop-loss:

1. Freeze all expansion.
2. Reprice listings and optimize occupancy.
3. Cut variable spend and renegotiate terms where possible.
4. If no recovery in next 60 days, run controlled wind-down.

Expansion gate

No second server unless all are met:

• 3 consecutive months positive net after financing
• Reserve still at or above 6-month floor after all payments
• No unresolved critical operational incidents

Generation-shift decision rule (for server #2)

Use a strict side-by-side gate between:

• Option A: add another A100 80GB server
• Option B: buy a newer-generation 4-GPU server

Buy newer generation only if:

1. Net monthly cashflow at 80% utilization is at least EUR 250/month better than Option A.
2. Break-even utilization is at least 8 percentage points lower than Option A.
3. Post-purchase reserve remains at least 9 months of fixed-load.
4. New contract package does not worsen founder downside (guarantees/default terms).

Otherwise default to Option A (same generation) or defer purchase.