We're designing the system, so I think we can choose what makes the most sense. I think regardless of whether or not you have taken out a loan (collateralized

We're designing the system, so I think we can choose what makes the most sense. I think regardless of whether or not you have taken out a loan (collateralized or not), you would still need to declare a value right away. In a case where you have a collateralized loan to purchase the asset, I imagine the lender could require the value you set to be at least the value left on the loan. (But the lender probably shouldn't be allowed to set the value beyond that stipulation.) I also want to say that I definitely do not have all the answers for all the possible policy issues that might or will come up. I enjoy trying to think them through, so the first attempt might have problems and the cycle of finding those problems and fixing them will eventually lead to something that hopefully works well.