Thank you for the detailed explanation. I understand better now why my payouts were reduced in HBD. I liken the debt aspect part of it to my offline corporate stock holdings and the company's issuance of warrants to be converted into stock at a later date.

If the debt ratio is greater than 10%, the conversion request will simply be rejected by the blockchain to avoid printing new HBD!

Is there a way to check when the debt ratio exceeds 10% so that I don't attempt a conversion in the first place?

Thanks for sharing your explanation of what's happening.