Recovery Budget Tiers by Asset Value
framework
Core idea
Recovery spend scales with the loss, but not linearly. Small losses need a larger share of their own value to chase, and at some point the share needed exceeds what recovery would return. Setting the tier at intake gives the client a defensible number and gives the case an honest floor.
Components
| Asset value | Suggested budget | Where the money goes |
|---|---|---|
| Under $100,000 | 15 to 25% of asset value | Focused exchange outreach, limited legal action |
| $100,000 to $1M | 10 to 15% | Targeted legal action in one or two jurisdictions, forensic tracing |
| $1M to $10M | 5 to 10% | Multi-jurisdiction approach, full fusion cell |
| Over $10M | 2 to 5% | Comprehensive global strategy, extended team |
Run it as a stage gate, not a lump sum:
- Set recovery probability metrics up front and say what they are.
- Define continue and abandon criteria before spending, so the abandon decision is a plan rather than a defeat.
- Reassess strategy at fixed intervals, not only when something goes wrong.
- Document the risk and reward calculation behind every major expenditure, because the client will ask later and so may their insurer.
When to use
At intake, when the loss is scoped and before committing to any filing. Revisit at each stage gate as the asset location changes.
Avoid when
Do not treat the percentages as a quote. They are a proportionality guide from one practice’s field experience, and actual cost swings hard on jurisdiction count, whether the assets are already at a compliant venue, and whether the counterparty is contactable at all.
Example
A $60,000 theft sits in the bottom tier, so the realistic budget is roughly $9,000 to $15,000. That funds a trace and a serious exchange outreach effort. It does not fund a filing in two jurisdictions, and saying so at intake is more useful to the victim than discovering it after the money is spent.
Related
Case Tractability: When to Decline · The Recovery Fusion Cell · The Six-Step Crypto Recovery Framework · Five Recovery Pitfalls · Intake Triage Checklist · The Scope Triangle