Going to translate this best I can into layman's terms, please correct me if you think I am wrong.
The Losses have been allocated ratably among Bitfinex Group customers with Bitfinex custody accounts in an effort to as closely as possible mirror what the Bitfinex Group considers would happen if it were placed into liquidation and its property distributed to its creditors.
They are trying simulating what would happen if they became insolvent and had to liquidate their assets by giving out this coin without actually liquidizing assets and shutting down.
A pro rata share of the Losses is reflected in your account balance. In an effort to address your portion of the Losses, the Bitfinex Group is committing to deploy its efforts to make you whole to the extent of the full amount of your pro rata portion of the Losses.
This part is saying they will pay you what you lost and not anymore, not any less.
To demonstrate this commitment, the Bitfinex Group is crediting to your account a token evidencing a limited-recourse, contingent obligation of the Bitfinex Group. The token is a notional credit
This is the important part. they are saying if you own BFX coin you are officially a creditor to Bitfinex. If they are unable to pay you back, then you are entitled to a piece of BFX's assets as you are a creditor. (When/how you get paid back is dependent on debt laws. )
Recovery may include any of the following: recovery of stolen property; funds raised in one or more financings; and available cash from ongoing operations.
How they are going to pay you back, and then followed by their TOS still apply blah blah blah.
The token is intended to be redeemed to the extent of its ratable share of the recoveries and may in any event at any time be redeemed by the Bitfinex Group at the Bitfinex Group’s sole option for its face value less the amount of any prior redemptions.
The token can be bought anytime by BFX and it will be bought at $1 which as it seems is the 'ratable share'.
And the rest is just saying you can't sue (or make a claim) for the tokens you have given away. If i have two tokens give one to johnny, I can't sue for two tokens. But I can for the one I have, and johnny can sue for the one he now has. .