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add-on amount (FS-BA-PM-CR)

Credit Risk (FS-BA-PM-CR)

Risk mark-up that takes into account the default risk arising from transactions with a market value that could increase within a particular period of time.

The add-on amount is calculated by multiplying the assessment basis by an add-on-factor. The add-on amount, coverage expense and the current market value together form the credit equivalent amount.

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