Adjustments

Visible balances through Risk Monitoring and those submitted through Financials may differ for a number of reasons (e.g. performance since the report, redemptions or added financing since the report, X-Margin coverage). As a result, for the purpose of the Credit Evaluation and specifically the Leverage category, X-Margin adjusts real-time Assets and Liability metrics according to the latest Financials submitted by the firm. X-Margin calculates a weighted average of the real-time and static metrics, where extent of the adjustment varies according to the quality and reliability of the financial information provided.

X-Margin checks financials statements versus Liabilities calculated in the system, and periodically requests that Liabilities are accurately entered.