Exactly this. It's a reserve for a future event likely to happen, with a material impact on the financials. Required by financial regulations. It might even b

Exactly this. It's a reserve for a future event likely to happen, with a material impact on the financials. Required by financial regulations. It might even be a footnote or called out as a business risk in a FB public financial statement. Similar to a reserve for doubtful accounts receivable. X% of receivables aged 90 days past due are unlikely to ever be collected. That gets booked onto the financials.