My approach for a long time has been to diversify my portfolio (a point Colbee seems to think is a stupid approach in another thread), so I have lots of different investments (active and passive) around bitcoin-land. Current BS&T exposure is 20%.
You misunderstood me. I don't think diversifying is stupid. I actually fully diversify mine also.
I was just saying that your exposure to PPT is the same as your exposure to BS&T, because the risk scenario is the same. If pirate defaults, you lose both your BS&T deposits and your PPT insurance fund. So if for example your exposure to PPT is also 20%, effectively 40% of your portfolio is at risk of pirate defaulting.
Assuming, of course, that PPT is equal in size to his other investments.