They have more than $250K per client but not the full value. Each account should be allocated MIN(balance, 250K). Then the remaining should be allocated pro ra

They have more than $250K per client but not the full value. Each account should be allocated MIN(balance, 250K). Then the remaining should be allocated pro rata. So if one is still owed $1000 (ie the balance was $251K before the collapse), then that account’s share of the remainder is: $1000 / (sum of all remaining balances owed) The haircut per account is only on amounts beyond $250K.