According to CoinMeta, risk service provider Tokenlogic proposes to introduce a bad debt protection mechanism for the WETH, USDC, and USDT markets of the AAVE V4 Ethereum core center. The proposed coverage targets are 800 ETH, 400,000 USDC, and 400,000 USDT respectively. Under the plan, in the event of bad debts, AAVE DAO will bear the first layer of losses, with amounts of 33 ETH, 15,000 USDC, and 15,000 USDT respectively. The excess amount will then be borne by the insurers who voluntarily participate in Umbrella. Insurers can receive additional rewards, but there is a risk that their invested funds may be reduced to cover the bad debts. The aforementioned amounts are currently only proposed coverage targets and not the actual insured funds that have been allocated.