We are looking to develop an automatic fail-safe algorithm that will allow a Quad to gracefully cope with the loss of a propeller (or motor).
Will it be possible to customize the Pixhawk failsafe mode with this algorithm?
Here is a video shown what we want to accomplish.
TIA!
I can not give you an answer but I certainly hope this will be possible, could save alot of quads and money! Awesome feature. 
Yes, that is one objective. Additionally, if more than one motor fails and a crash is inevitable, then it will delay the crash to allow sufficient warning for any people in the area. Thanks!