01
Prepare end-of-term disposal as agreed
Follow notification and disposal procedures, retaining equipment, maintenance, quotation and eligible-sale records.
Additional protection · Asset owners · Lessors · Financiers
GPU Residual Value Protection
Assess and arrange end-of-term residual value protection for GPU assets based on equipment, duration and underwriting conditions.
What is covered
Equipment value shortfalls at the agreed term end
Where equipment meets condition, maintenance and disposal requirements at the agreed settlement date, the shortfall is assessed between the agreed residual value and eligible net disposal proceeds, or under the policy's specified valuation mechanism.
Covered equipment, settlement dates and disposal requirements must be agreed in advance.
What is excluded
- A market-price decline during the term does not automatically trigger an end-of-term payout.
- Guarantees of loan principal or investment returns, and unagreed early defaults or accelerated disposals.
- Equipment damage, unpaid rent, or shortfalls caused by ineligible disposal, deliberate below-market sales or inadequate maintenance.
Costs & Claim Examples
References & estimates · Not a formal quoteInsurance cost reference$200,000–300,000Premium budget from a public model · Insured end-of-term residual value of $2,000,000 · Three-year budget · USD
Standalone service budget$16,000Optional standalone full-term service estimate
Assumed workload · 20 person-days × $800/person-day
Assumed workload · 20 person-days × $800/person-day
The insurance reference applies 10%–15% of the insured amount once to a three-year budget; it is not an annual rate. The source model does not provide a formal quote for this example's duration and payout terms.
The formal proposal specifies whether standard monitoring and verification are included. Standalone services are not a mandatory cost of buying insurance, and included work is not charged twice. Taxes and third-party expenses are listed separately; the two figures do not form a package price.
View the insurance cost source and scope
GPU Lenders / American Compute · Public budgeting model ↗
Source updated on 2026-10-17: the model uses 50% of expected end-of-term residual value as the insured amount, with a reference premium percentage of 10%–15%, defaulting to 15%, and explicitly states that it is not a quotation. It provides no transaction quotation for this example's three-year term or deductible conditions.
This example assumes equipment purchased for $10 million, expected residual value of $4 million after three years, and an insured amount of 50%, or $2 million. Premium is calculated at the reference percentage of 10%–15% and included once in the three-year budget. Purchase price, expected residual value and term are all assumptions.
View the standalone service budget and scope
Asset records & ownership document checks2 person-days$1,600
Operational, maintenance & condition data analysis2 person-days$1,600
Coordination of independent valuation documents2 person-days$1,600
Preparation of underwriting documents & reports2 person-days$1,600
2 person-days of updates annually, for three years6 person-days$4,800
End-of-term disposal records & settlement coordination6 person-days$4,800
Workload budget for one centrally located asset package with complete records. $800 per person-day (8 hours) is an assumed rate for this example, excluding independent testing, third-party valuation reports and on-site inventory. Work is scheduled by delivery stage; this does not mean all service fees are collected in advance.
Additional expenses: taxes, independent testing and valuation, logistics and disposal, legal services, and premium-financing interest and fees.
Public sources are provided for information only and do not imply a partnership with or endorsement of aimam.
What would you bear on this loss?
Example: agreed end-of-term residual value of $2,000,000, eligible net sale proceeds of $500,000 and a $1,500,000 shortfall, less a fixed retained amount of $50,000.
Assumed payout limit$2,000,000
Customer retention within the protected shortfall$50,000
Calculated payout in this example$1,450,000
Net sale proceeds plus the illustrative payout total $1,950,000, before premiums, service fees and other expenses. $50,000 is only the retained amount within the protected shortfall. The $8 million change in value between purchase price and the $2 million floor is outside this example's cover.
Expand the calculation & conditions
This is an independent claim illustration: at the end of three years, equipment condition and eligible disposal meet the policy, and net sale proceeds are used. Term, deductible, limits and absence of proportional retention are assumptions, not underwriting terms provided by the public model.
- Agreed end-of-term residual value floor
- $2,000,000
- Payout limit in this example
- $2,000,000
- Fixed deductible
- $50,000
- Proportional retention
- Assumed none in this example
- Agreed end-of-term residual value floor
- $2,000,000
- Less: eligible net sale proceeds
- −$500,000
- Value shortfall within the protected floor
- $1,500,000
- Less: fixed deductible
- −$50,000
- Illustrative payout within the limit
- $1,450,000
If only an interim market quotation falls, the agreed trigger date has not arrived, or disposal fails policy conditions, this example's residual value payout is $0.
How claims work
02
Verify the residual value shortfall
Confirm settlement timing and equipment condition, then calculate using net disposal proceeds or the agreed independent valuation. aimam helps organize documents.
03
Deduct retention & apply the payout limit
The insurer determines the shortfall under the policy, then applies the retained amount, loss sharing and payout limits.
Notification, waiting and payment periods follow the policy. Retained amounts exclude premiums, service fees and other uninsured losses.
Detailed Terms & Required Documents
Can early default or a price fall during the term trigger a payout?
Cover is assessed against the agreed equipment, settlement date and condition requirements. A price fall during the term, borrower default or early sale does not automatically trigger an end-of-term residual value payout.
Unpaid rent, equipment damage and loan principal are managed separately. Check that coverage dates match lease and financing terms. An end-of-term value floor does not replace repayment protection throughout the term.
How are end-of-term value and disposal proceeds established?
First confirm ownership, disposal authority and rights to insurance proceeds. Then calculate using eligible net sale proceeds or an independent valuation method accepted in advance. An asking price is not the same as realizable proceeds.
Check equipment condition, resale eligibility, marketing periods, arm's-length transactions and costs such as dismantling and transport. Below-market related-party sales or ineligible disposals do not automatically create a covered shortfall.
What information is needed, and how are interests disclosed?
Prepare model and serial numbers, title and financing documents, location, maintenance and inspection records, comparable transactions, the planned disposal method and proposed coverage dates. Retain offers, marketing, sale and receipt records for settlement.
If aimam or a related party helps arrange a transaction, the relationship and fees are disclosed. Valuation remains independent. Buybacks, guarantees, other insurance and financiers' rights to proceeds are reviewed together; the insurer determines the payout.
How does this work with other cover?
Residual value cover is assessed separately from outage and non-payment risks. It does not guarantee the equipment purchase price or loan principal.
See how coverages work together ↗