The disciples lost quite a bit, but their Extreme Formation Sect is a great teaching that has been passed down for nearly two million years, with untold resources accumulated, and there's no problem in supplying these resources to the disciples by opening the treasury.
However, the problem is that supplying resources to everyone essentially tells these disciples that they can afford to lose, as the great teaching will back them up.
In the future, the ethos of their Extreme Formation Sect would deteriorate, so he had to come up with a compromise: resources can be lent to disciples, but these resources must be returned, with interest.
This, however, makes the great teaching seem somewhat unkind, as the disciples who lost have to borrow resources with interest?
Therefore, he added a clause that the interest could be offset if they engage in sparring with someone from the Hundred Peaks Sect of the same cultivation realm.
