Depletion Boundary

Definition

The boundary at which regenerative capital drifts back into a grant: capability return can no longer compensate for capital decay. REA states it as the joint inequality R + γ/C₀ < 1 — not as separate thresholds on R and γ. It is one of four such boundaries, one per collapse target.

Formula

Example

The collapse is recursive regardless of initial capital size, so a sub-threshold pool cannot be rescued by making it larger — REA's strongest practical claim in this section.

Source

REA §6 (failure boundaries)