ASLC GroupCat Bond — Indicative Term Sheet
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Indicative Term Sheet

ASLC AI
Catastrophe Bond

Indicative terms for the first insurance-linked security designed to transfer AGI and autonomous systems tail risk to capital markets. This is a structuring framework, not a live offering.

TSTerm SheetASLC Re Ltd. — 144A / Reg S
Issuer / SPV
ASLC Re Ltd. (Cayman Islands)
Sponsor
ASLC (Autonomous Systems Liability Clearing)
Deal size
$250,000,000 (Class A) / $150,000,000 (Class B)
Class A coupon
SOFR + 850 bps
Class B coupon
SOFR + 1,200 bps
Tenor
4 years (with 1-year extension option)
Collateral
US Treasury money market fund held in trust
Trigger type
Parametric (dual trigger)
Trigger 1 — Capability
Frontier AI system achieves >90th percentile on 3+ standardized professional benchmarks (legal, medical, engineering) AND demonstrates autonomous multi-step task completion without human oversight, as verified by independent evaluation body
Trigger 2 — Incident
Documented AI-caused liability event exceeding $500M in aggregate claims across 3+ unrelated counterparties within a 90-day window, as reported by recognized claims aggregator or regulatory body
Loss attachment
Class A: Both triggers must be met. Class B: Either trigger sufficient.
Expected loss (modeled)
Class A: 1.8–2.4% | Class B: 4.5–6.0%
Risk period
Continuous (no seasonal window)
Reset mechanism
Annual trigger recalibration based on frontier model capability assessments
Governing law
New York
Listing
Bermuda Stock Exchange (expected)
Rating target
BB+ (Class A) / B+ (Class B)
Use of proceeds
Collateral trust for AI liability claims settlement
Structure

SPV &
Cash Flow

Standard 144A / Reg S catastrophe bond structure adapted for AI peril. Fully collateralized, no counterparty risk to investors on non-trigger scenario.

InvestorsPurchase notes→ASLC Re Ltd. (SPV)
ASLC Re Ltd. (SPV)Proceeds to collateral→Trust Account (US Treasury MMF)
Sponsor (ASLC)Pays premium→ASLC Re Ltd. (SPV)
ASLC Re Ltd. (SPV)Coupon payments→Investors
Trigger eventClaims settlement→Trust releases collateral to sponsor
No triggerMaturity→Principal returned to investors
Innovations

Key Structural
Innovations

Dual-trigger design
Class A requires both a capability threshold AND a documented loss event. Eliminates false positives from benchmark gaming. Capital release only on real-world impact.
Annual trigger recalibration
AI capabilities advance rapidly. Static triggers become irrelevant. The reset mechanism adjusts capability thresholds annually based on frontier model assessments, keeping the bond economically meaningful.
No seasonal risk period
Hurricane cat bonds have June–November exposure. AI risk is continuous. A model can fail in January or August. Year-round risk reflected in the elevated coupon.
Disclaimer

This indicative term sheet is provided for informational and structural discussion purposes only. It does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation of any security. The terms described are indicative and subject to change. Any actual issuance would be subject to regulatory approval, investor due diligence, and definitive documentation. ASLC is not a registered broker-dealer or investment adviser.

The first AI catastrophe bond
will define the market.

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