Shortfall Events can be caused by various risks such as smart contract exploits, bad liquidations and/or oracle attacks. To be clear, they should never happen under normal conditions and can be mitigated by good risk management. To date, Shortfall Events in credit protocols have been limited, and, when they have occurred, resulted from exploits/economic attacks. However, when Shortfall Events do occur and are attributable to a governance failure of the Martian Council, the Martian Council should be able to respond to its natural incentives by tapping funds available to compensate the injured users.