(I don't have a) gears-level model for prospect theory

Why does a set point make sense? I can't help but feel like it represents something important about rational risk-aversion following from accounting for model error. Like, leaving a buffer for what can screw you that you don't see coming.

Reasoning from distances of a scenario from a set point representing the status quo seems like a good heuristic for valuing known-goods higher than maybe-goods. Bird-in-hand logic. This in turn seems connected to scarce-resource reasoning.

Increasing a sense of safety then in theory should naturally push one to be both more risk-seeking and more resource-generous. the link between safety and these behaviours is pretty direct in my experience.