 How does the principle of compensation get us to the minimal state? According to Nozick, through its enforced oversight over others’ provision of protective services the association exercises enough of a monopoly over the provision of those services to become an ultra-minimal state. However, under the principle of compensation, the dominant association’s interference with moderately risky independents who are disadvantaged by this interference will be permissible only if the association compensates those independents for those disadvantages. Nozick envisions that compensation naturally taking the form of the ultra-minimal state providing free or subsidized protective services to those who will (otherwise) be disadvantaged by its interferences. When the ultra-minimal state secures the permissibility of its monopoly oversight by providing free or subsidized protection to those who are (otherwise) disadvantaged by its oversight it becomes a (legitimate) minimal state.