7.3.5.3.1 Add-on Rate Calculation Methods

You can use any of the following methods in an Add-on Rule when the selected Add-on Rate Type is Liquidity Premium, Basis Risk Cost, Pricing Incentive, or Other Add-on Rate:

• Add-on Rate Rule - Fixed-Rate
• Add-on Rate Rule - Fixed Amount
• Add-on Rate Rule - Formula Based Rate
• Add-on Rate Rule - Use TP Method from selected TP Rule

Alternatively, you can use any of the following methods in an Add-on Rate Rule when the selected Add-on Rate Type is Breakage Charge:

• Economic Loss
• Fixed Amount
• Fixed Percentage

• Add-on Rate Rule - Fixed Rate
  
• Add-on Rate Rule - Fixed Amount
  The Fixed Amount Add-on Rate Method allows the user to associate an amount with specific terms or term ranges. Reference term selections include the following:
• Add-on Rate Rule - Formula Based Rate
  
• Add-On Rate Rule - Use TP Method from Selected TP Rule
  The Use TP Method from Selected TP Rule selection allows the user to calculate the Add-On Rate based on any TP Method available in the selected Transfer Pricing Rule.