The higher the risk of e.g. a loan, the more interest it has to pay out to be worthwhile. The exact amount* is, as I understand it, governed by the Black–Scholes model.
* probably with some spherical-cows-in-a-vacuum assumptions given how the misuse of this model was a factor in the global financial crisis.
“trust arrives on foot and leaves on horseback”
seems it’s applicable to this case too. Sad to see decades of work being tore apart in a few months.