1.9.5 Product Limits

This topic describes the product limits.

For contracts in a particular currency linked to the same product, you should specify: For Fixed Rate products:

• The standard rate that is applicable for contracts involving the product
• The Minimum and Maximum interest rate that can be applied on a contract

If the interest rate specified for a contract is less than this minimum rate, the minimum rate will be applied on the contract. Similarly, if the interest rate specified for a contract is greater than this maximum rate, this rate will be applied on the contract.

The minimum, maximum and default rates allows negative value, if ‘Negative Interest Allowed’ is checked for the class code.

By defining minimum and maximum rates for a fixed interest, you can ensure that your rates stay within the stipulated limits.