Unless you have a good estimate of your future earnings and can borrow up to that at low interest rates, I think “amounts that are insignificant compared to your current liquidity” might be a slightly more rational metric. Note also that any explanation of human risk aversion (as opposed to rational risk aversion) is trying to explain behaviors that evolved during a time when “borrowing at low interest rates” wasn’t really an option. If a failed risk means you starve to death next year, it doesn’t matter how copious a quantity of food you otherwise would have acquired in subsequent years.
Unless you have a good estimate of your future earnings and can borrow up to that at low interest rates, I think “amounts that are insignificant compared to your current liquidity” might be a slightly more rational metric. Note also that any explanation of human risk aversion (as opposed to rational risk aversion) is trying to explain behaviors that evolved during a time when “borrowing at low interest rates” wasn’t really an option. If a failed risk means you starve to death next year, it doesn’t matter how copious a quantity of food you otherwise would have acquired in subsequent years.