# Can a Determining Party Revise Its Close out Calculation after It Has Been Issued? ▴ Question

**Published:** 2025-08-02
**Categories:** Question

---

![An intricate system visualizes an institutional-grade Crypto Derivatives OS. Its central high-fidelity execution engine, with visible market microstructure and FIX protocol wiring, enables robust RFQ protocols for digital asset derivatives, optimizing capital efficiency via liquidity aggregation](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-price-discovery.jpg)

![A dark, robust sphere anchors a precise, glowing teal and metallic mechanism with an upward-pointing spire. This symbolizes institutional digital asset derivatives execution, embodying RFQ protocol precision, liquidity aggregation, and high-fidelity execution](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-microstructure-1.jpg)

## Concept

The question of whether a Determining Party can revise its [close-out calculation](https://prime.greeks.live/area/close-out-calculation/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) after issuance cuts to the core of contractual certainty in the global derivatives market. The answer, established through significant legal precedent, is a firm and resounding no. Once a close-out amount is calculated and the corresponding statement is served under the [ISDA Master Agreement](https://prime.greeks.live/area/isda-master-agreement/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), it cannot be unilaterally withdrawn or revised. This principle is a foundational element of the market’s architecture, designed to create a fixed and irreversible point of obligation following a termination event.

The issuance of the notice under Section 6(d) of the ISDA [Master Agreement](https://prime.greeks.live/question/what-are-the-key-differences-between-a-prime-brokerage-agreement-and-an-isda-master-agreement/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) is treated as a “significant contractual event” that crystallizes the debt obligation between the two parties. It transforms a fluid set of future obligations into a single, final net payment amount. To allow a party to retract this statement would be to undermine the very finality the mechanism is designed to achieve, potentially re-opening risk calculations that the [close-out process](https://prime.greeks.live/question/what-constitutes-a-defensible-process-for-documenting-close-out-calculations/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) is meant to resolve permanently.

At its heart, the close-out mechanism is the market’s primary defense against systemic risk. When a counterparty defaults, the surviving party must terminate all outstanding transactions and calculate the net replacement cost. This calculation, the Close-Out Amount, represents the [economic equivalent](https://prime.greeks.live/area/economic-equivalent/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) of the terminated trades. The “[Determining Party](https://prime.greeks.live/area/determining-party/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite)” is the entity tasked with performing this calculation.

The inability to revise this figure is a feature, a structural safeguard that prevents a party from attempting to re-calculate its position based on favorable market movements that occur after the initial calculation has been made. The legal framework surrounding the ISDA Master Agreement treats the delivery of the [close-out statement](https://prime.greeks.live/question/how-does-market-illiquidity-affect-the-validity-of-a-close-out-amount-calculation/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) as an act that fundamentally alters the relationship between the counterparties, moving it from an ongoing concern to one of liquidation and final settlement. This finality is paramount for providing certainty to the non-defaulting party and to the market as a whole, ensuring that the financial fallout from a default is contained and quantified swiftly.

> The finality of a close-out calculation is a cornerstone of derivatives contract law, preventing unilateral revisions after issuance to ensure market stability.

The governing legal interpretation, most notably clarified in the case of [Lehman Brothers Special Financing](https://prime.greeks.live/question/how-did-the-lehman-brothers-bankruptcy-influence-the-adoption-of-the-2002-isda-close-out-amount-protocol/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) Inc. v National Power Corporation, underscores this principle. In that case, the court ruled decisively that a Determining Party cannot simply withdraw a calculation and submit a new one, even if the original contained errors. The court established that any correction of an erroneous calculation is a matter to be resolved either by mutual agreement between the parties or, failing that, by the court itself. A revised calculation submitted by the Determining Party may be considered as evidence by a court, but it does not replace the original binding statement.

This judicial stance reinforces the integrity of the close-out process, placing a high burden on the Determining Party to ensure its initial calculation is performed with diligence and accuracy according to the standards set forth in the governing ISDA Master Agreement. The system is architected to prevent second thoughts, ensuring that the moment of calculation is definitive.

![A cutaway view reveals an advanced RFQ protocol engine for institutional digital asset derivatives. Intricate coiled components represent algorithmic liquidity provision and portfolio margin calculations](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-protocol-engine-digital-asset-derivatives-core-internal-mechanism-visualized.jpg)

## The Role of the Determining Party

The Determining Party operates as the central agent in the close-out process following an Early Termination Date. This role is typically assumed by the non-defaulting party or the non-affected party in the case of a termination event. Its primary function is to calculate the [Close-Out Amount](https://prime.greeks.live/area/close-out-amount/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), a single figure that represents the aggregate gains or losses resulting from the termination of all transactions under the ISDA Master Agreement. This calculation is a complex undertaking, requiring the Determining Party to assess the replacement cost or economic equivalent of each terminated trade in the prevailing market conditions.

The process involves sourcing [market data](https://prime.greeks.live/area/market-data/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), obtaining quotes for replacement trades, or using internal valuation models to arrive at a figure that is both fair and representative of the market at the time of termination. The authority granted to the Determining Party is substantial, but it is constrained by a critical obligation to act in [good faith](https://prime.greeks.live/area/good-faith/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) and adhere to specific procedural standards defined within the agreement.

![An intricate, blue-tinted central mechanism, symbolizing an RFQ engine or matching engine, processes digital asset derivatives within a structured liquidity conduit. Diagonal light beams depict smart order routing and price discovery, ensuring high-fidelity execution and atomic settlement for institutional-grade trading](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-platform-prime-os.jpg)

## Understanding the Close out Calculation

The Close-Out Amount itself is a meticulously defined concept under the [2002 ISDA Master Agreement](https://prime.greeks.live/area/2002-isda-master-agreement/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). It is the sum of the losses or costs that the Determining Party would incur, or the gains it would realize, in replacing the economic equivalent of the terminated transactions. This includes not only the stream of payments and deliveries that would have occurred but also the value of any optionality embedded within the trades. The calculation can be based on a variety of inputs, including:

- **Quotations from Third Parties** ▴ Obtaining indicative or firm quotes from other market makers for replacement transactions.

- **Relevant Market Data** ▴ Using observable market data such as interest rate curves, foreign exchange rates, and volatility surfaces to feed into valuation models.

- **Internal Models** ▴ Employing the Determining Party’s own proprietary models, provided they are the same type used in the regular course of its business for valuing similar transactions.

The objective is to produce a figure that puts the non-defaulting party in the same economic position it would have been in had the transactions run their course. This requires a comprehensive assessment of all material terms and the prevailing market environment at the moment of termination.

![A polished metallic disc represents an institutional liquidity pool for digital asset derivatives. A central spike enables high-fidelity execution via algorithmic trading of multi-leg spreads](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-liquidity-system.jpg)

![A sleek, multi-segmented sphere embodies a Principal's operational framework for institutional digital asset derivatives. Its transparent 'intelligence layer' signifies high-fidelity execution and price discovery via RFQ protocols](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-protocol-digital-asset-derivatives-execution-engine.jpg)

## Strategy

The strategic framework governing close-out calculations under the ISDA Master Agreement is predicated on the principle of objective reasonableness. The inability of a Determining Party to revise its calculation is a strategic design choice that enforces discipline and promotes certainty in the market. The [2002 ISDA](https://prime.greeks.live/area/2002-isda/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) Master Agreement introduced a pivotal change in this regard, moving away from the more subjective standards of the 1992 agreement.

Under the 2002 framework, the Determining Party must not only act in good faith but must also use “[commercially reasonable](https://prime.greeks.live/area/commercially-reasonable/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) procedures in order to produce a [commercially reasonable result](https://prime.greeks.live/question/what-constitutes-a-commercially-unreasonable-result-in-a-derivatives-close-out-scenario/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite).” This language imposes a higher, objective standard that can be measured and, if necessary, challenged and replaced by a court’s calculation. The strategy is to remove ambiguity and prevent a situation where a Determining Party could use its discretion to arrive at a self-serving figure without objective justification.

This shift towards objectivity has profound strategic implications. It means that the entire calculation process must be transparent, well-documented, and defensible. A Determining Party must be prepared to demonstrate that its procedures ▴ whether based on third-party quotes or internal models ▴ were consistent with standard market practices and were applied in a way that was designed to achieve a fair market value. The prohibition on [unilateral revision](https://prime.greeks.live/question/what-are-the-primary-differences-between-unilateral-cva-and-bilateral-cva-in-practice/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) forces the Determining Party to treat its initial calculation with the utmost seriousness.

There is no opportunity to correct a hastily prepared figure later. This creates a powerful incentive to invest in robust valuation systems and clear internal protocols for handling default scenarios. The strategy of the ISDA framework is to front-load the diligence, ensuring that the calculation is performed correctly the first time, thereby minimizing the potential for protracted disputes after the fact.

> The objective standard of “commercial reasonableness” in the 2002 ISDA Master Agreement is a strategic pillar designed to ensure fair and defensible close-out calculations.

From the perspective of the party receiving the close-out statement, the finality of the calculation provides a clear and stable basis for its own financial planning and risk management following a counterparty default. If the receiving party believes the calculation is erroneous or fails the test of [commercial reasonableness](https://prime.greeks.live/area/commercial-reasonableness/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), its recourse is not to wait for a potential revision from the Determining Party, but to formally dispute the amount. The legal framework provides a clear pathway for such challenges, with the courts acting as the ultimate arbiter.

This creates a balanced system where the Determining Party has the initial responsibility to calculate the amount, but the receiving party has the right to challenge it based on objective criteria. The inability to revise the calculation prevents the Determining Party from using the threat of revision as a negotiating tactic, further contributing to a more predictable and orderly resolution process.

![A sleek, dark teal, curved component showcases a silver-grey metallic strip with precise perforations and a central slot. This embodies a Prime RFQ interface for institutional digital asset derivatives, representing high-fidelity execution pathways and FIX Protocol integration](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-engine.jpg)

## How Does the Standard of Calculation Differ between Agreements?

The evolution from the [1992 ISDA Master Agreement](https://prime.greeks.live/area/1992-isda-master-agreement/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) to the 2002 version marked a significant tightening of the standards for close-out calculations. This change reflects a market-wide desire for greater objectivity and a reduction in the potential for disputes arising from subjective interpretations. The following table illustrates the key differences in the strategic approach between the two agreements.

| Aspect | 1992 ISDA Master Agreement | 2002 ISDA Master Agreement |
| --- | --- | --- |
| Primary Calculation Methodologies | Market Quotation or Loss. Parties could elect which method applied. Loss was a more subjective measure of what a party “reasonably determines in good faith to be its total losses and costs.” | Close-Out Amount. This single, unified methodology replaced the dual options and is designed to be a more objective measure of the economic equivalent of the terminated trades. |
| Governing Standard | The standard for Loss was largely subjective, requiring a rational decision made in good faith. This gave the Determining Party considerable discretion. | The standard is explicitly objective, requiring the use of “commercially reasonable procedures to produce a commercially reasonable result.” This standard can be judicially reviewed and replaced. |
| Flexibility of Inputs | Market Quotation was based on obtaining quotes from reference market makers. Loss was more flexible but less defined. | The Close-Out Amount definition provides explicit flexibility to use third-party quotes, relevant market data, or internal information, provided the procedures are commercially reasonable. |
| Potential for Disputes | The subjective nature of the Loss calculation could lead to disputes over whether a determination was “rational,” a relatively low bar to clear. | While intended to reduce disputes, the objective standard of “commercial reasonableness” provides a clearer, albeit higher, threshold for challenging a calculation in court. |

![A sleek, dark metallic surface features a cylindrical module with a luminous blue top, embodying a Prime RFQ control for RFQ protocol initiation. This institutional-grade interface enables high-fidelity execution of digital asset derivatives block trades, ensuring private quotation and atomic settlement](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-protocol-engine-module-for-high-fidelity-execution-and-liquidity-aggregation.jpg)

## Strategic Considerations for the Determining Party

Given the finality of the close-out calculation, a Determining Party must adopt a rigorous and defensible strategy for its determination process. Key strategic considerations include:

- **Documentation** ▴ Every step of the calculation process must be meticulously documented. This includes records of all market data used, communications with any third parties providing quotes, and detailed explanations of the methodologies applied by internal models.

- **Procedural Consistency** ▴ The procedures used must be consistent with the party’s normal business practices for valuing similar instruments. Using ad-hoc or unusual methods for a close-out calculation could be challenged as not being commercially reasonable.

- **Market Sounding** ▴ The party should gather a sufficient range of data points to support its final figure. Relying on a single quote or a narrow data set could expose the calculation to challenges that it does not reflect the broader market.

- **Hedging Costs** ▴ The definition of Close-Out Amount allows for the inclusion of costs associated with terminating or re-establishing hedges related to the terminated transactions. These costs must be real, quantifiable, and directly attributable to the close-out.

![Robust institutional Prime RFQ core connects to a precise RFQ protocol engine. Multi-leg spread execution blades propel a digital asset derivative target, optimizing price discovery](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-proto-insti-digital-asset-derivs-hi-fi-exec-capital-effi-risk-mgmt.jpg)

![An abstract visualization of a sophisticated institutional digital asset derivatives trading system. Intersecting transparent layers depict dynamic market microstructure, high-fidelity execution pathways, and liquidity aggregation for RFQ protocols](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-institutional-digital-asset-derivatives-rfq-execution.jpg)

## Execution

The execution of a close-out calculation is a high-stakes, time-sensitive process that culminates in the issuance of a legally binding statement. The absolute prohibition on unilateral revision means that the operational execution must be flawless. Once an Early Termination Event occurs, the Determining Party must immediately begin the process of valuing all terminated transactions. This involves a coordinated effort between traders, risk managers, quantitative analysts, and legal counsel.

The first step is to establish the precise valuation time, as market data will be frozen at this point for the purpose of the calculation. The party will then execute its valuation procedures, which, as established, must be commercially reasonable.

If, after the [Section 6(d) notice](https://prime.greeks.live/area/section-6d-notice/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) has been delivered, the Determining Party discovers a manifest error in its calculation ▴ for example, a simple mathematical mistake or a data input error ▴ it cannot simply issue a corrected notice. The binding nature of the original notice prevents this. The correct operational procedure is to promptly notify the other party of the discovered error. From there, two paths are available.

The first and most efficient path is for the parties to mutually agree on a corrected amount. This can be formalized through a bilateral amendment or a simple letter agreement acknowledging the error and the revised figure. The second path, which is taken if no agreement can be reached, is to submit the matter to a court or tribunal. In this scenario, the court will not simply accept the Determining Party’s revised figure.

Instead, the court will undertake its own analysis to determine what the Close-Out Amount should have been, using the [objective standard](https://prime.greeks.live/area/objective-standard/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) of commercial reasonableness. The original calculation and the proposed revision will both be submitted as evidence for the court’s consideration.

> A discovered error in a close-out calculation necessitates bilateral agreement or judicial intervention for correction; unilateral revision is contractually forbidden.

This process underscores the critical importance of having a robust and pre-defined operational playbook for handling terminations. Financial institutions must have systems and controls in place to ensure the accuracy of their calculations from the outset. This includes automated data feeds from reliable sources, pre-vetted valuation models that are regularly back-tested, and a clear, multi-level sign-off process before any close-out statement is issued.

The legal and financial consequences of an erroneous calculation are significant, not just in terms of the potential for litigation, but also in the operational resources that must be diverted to resolve the dispute. The entire execution framework is designed to compel accuracy and diligence upfront, reflecting the serious and irreversible nature of the close-out process.

![A futuristic, dark grey institutional platform with a glowing spherical core, embodying an intelligence layer for advanced price discovery. This Prime RFQ enables high-fidelity execution through RFQ protocols, optimizing market microstructure for institutional digital asset derivatives and managing liquidity pools](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-prime-os-intelligence-layer.jpg)

## What Is the Workflow for Correcting an Erroneous Calculation?

When an error is found in an issued close-out statement, a specific and disciplined workflow must be followed. A unilateral revision is not an option. The process is one of negotiation and, if necessary, litigation, where the burden of proof rests on demonstrating the correct, commercially reasonable amount.

| Step | Action | Key Considerations |
| --- | --- | --- |
| 1. Error Discovery | The Determining Party identifies a potential error in its issued Section 6(d) close-out statement. | The error must be substantive and demonstrable, such as a calculation mistake, use of incorrect market data, or omission of a transaction. A change of mind or subsequent market movement is not an error. |
| 2. Notification | The Determining Party formally notifies the counterparty in writing of the discovered error and provides a detailed explanation. | Transparency is critical. The notification should include a revised calculation and all supporting evidence showing how the new figure was derived and why the original was incorrect. |
| 3. Bilateral Negotiation | The parties enter into discussions to agree on a corrected Close-Out Amount. | This is the most efficient resolution. Legal teams will typically negotiate a formal amendment or side letter to document the agreed-upon correction, releasing both parties from claims related to the original error. |
| 4. Failure to Agree | If negotiations fail, the dispute remains. The originally calculated amount is often the one that is legally due, subject to the dispute. | The counterparty may refuse to accept the correction, believing the original amount is correct or that the revised amount is also unreasonable. |
| 5. Litigation or Arbitration | The matter is brought before a court or arbitral tribunal, as specified in the ISDA Master Agreement. | The court will act as the ultimate arbiter. It will not simply enforce the revised calculation but will determine the correct Close-Out Amount based on an objective assessment of what would have been commercially reasonable at the time of termination. |
| 6. Final Determination | The court issues a final and binding judgment on the correct Close-Out Amount. | This judgment replaces the original calculation. The process can be lengthy and costly, highlighting the importance of getting the calculation right the first time. |

![A central precision-engineered RFQ engine orchestrates high-fidelity execution across interconnected market microstructure. This Prime RFQ node facilitates multi-leg spread pricing and liquidity aggregation for institutional digital asset derivatives, minimizing slippage](https://options.greeks.live/wp-content/uploads/2025/08/high-fidelity-rfq-execution-for-institutional-crypto-derivatives.jpg)

## Operationalizing Commercial Reasonableness

To ensure that a close-out calculation can withstand scrutiny, a financial institution’s execution process must be a direct operationalization of the “commercial reasonableness” standard. This involves several concrete steps:

- **Pre-defined Data Sources** ▴ The institution should maintain a list of approved, independent data sources for all relevant asset classes. Relying on a single, unverified source is a significant operational risk.

- **Model Validation** ▴ Any internal models used for valuation must be subject to a rigorous and independent model validation process. This includes back-testing, stress testing, and documentation of the model’s assumptions and limitations.

- **Contemporaneous Records** ▴ The creation of detailed, contemporaneous records is vital. This includes screenshots of market data, recordings of phone calls where quotes were obtained, and logs from valuation systems. These records become primary evidence in a dispute.

- **Segregation of Duties** ▴ The personnel responsible for executing the valuation should be separate from those who managed the relationship with the defaulted counterparty to avoid any appearance of bias. A final review by an independent risk management or legal function is a crucial control step.

By embedding these principles into the operational fabric of the institution, a Determining Party can execute its duties with a high degree of confidence that its calculation will be deemed final, binding, and, above all, commercially reasonable.

![A pristine white sphere, symbolizing an Intelligence Layer for Price Discovery and Volatility Surface analytics, sits on a grey Prime RFQ chassis. A dark FIX Protocol conduit facilitates High-Fidelity Execution and Smart Order Routing for Institutional Digital Asset Derivatives RFQ protocols, ensuring Best Execution](https://options.greeks.live/wp-content/uploads/2025/08/institutional-grade-digital-asset-derivatives-rfq-protocols-optimizing-high-fidelity-execution-via-prime-os-intelligence.jpg)

## References

- Firth, Simon. Derivatives ▴ Law and Practice. Sweet & Maxwell, 2004.

- High Court of Justice. Lehman Brothers Special Financing Inc. v National Power Corporation & Anor EWHC 487 (Comm). 2018.

- International Swaps and Derivatives Association. 2002 ISDA Master Agreement. ISDA, 2002.

- International Swaps and Derivatives Association. ISDA Close-out Amount Protocol. ISDA, 2009.

- GlobalCapital. “The 2002 ISDA Master Agreement Made Simple.” GlobalCapital, 6 Jan. 2003.

![A sophisticated modular apparatus, likely a Prime RFQ component, showcases high-fidelity execution capabilities. Its interconnected sections, featuring a central glowing intelligence layer, suggest a robust RFQ protocol engine](https://options.greeks.live/wp-content/uploads/2025/07/institutional-rfq-engine-core-for-digital-asset-derivatives-high-fidelity-execution-protocols.jpg)

## Reflection

The inability to revise a close-out calculation transforms it from a mere accounting entry into a foundational act of market stabilization. The knowledge that this figure is final compels a level of discipline and precision that ripples through an institution’s entire operational framework. It demands robust valuation systems, transparent procedures, and a culture of diligence. Reflecting on this principle invites a deeper question about your own operational architecture.

Is it designed merely to produce a number, or is it engineered to produce a final, defensible, and commercially reasonable result under pressure? The strength of the close-out mechanism lies in its rigidity. Its proper execution is a testament to the strength of the systems that support it.

![A sleek, circular, metallic-toned device features a central, highly reflective spherical element, symbolizing dynamic price discovery and implied volatility for Bitcoin options. This private quotation interface within a Prime RFQ platform enables high-fidelity execution of multi-leg spreads via RFQ protocols, minimizing information leakage and slippage](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-institutional-digital-asset-derivatives-rfq-execution-hub.jpg)

## Glossary

<a href="https://prime.greeks.live/area/close-out-calculation/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A precision-engineered control mechanism, featuring a ribbed dial and prominent green indicator, signifies Institutional Grade Digital Asset Derivatives RFQ Protocol optimization. This represents High-Fidelity Execution, Price Discovery, and Volatility Surface calibration for Algorithmic Trading](https://options.greeks.live/wp-content/uploads/2025/07/principal-operational-framework-precision-calibration-for-institutional-digital-asset-derivatives-rfq-protocol-high-fidelity-execution-prime-os-and-volatility-surface-optimization.jpg)

## Close-Out Calculation

Meaning ▴ The Close-Out Calculation is the precise algorithmic determination of a final net financial obligation or entitlement arising from the termination or liquidation of one or more derivative positions, typically triggered by a pre-defined event such as a margin breach or contract expiry. </a><a href="https://prime.greeks.live/area/isda-master-agreement/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Sleek, metallic components with reflective blue surfaces depict an advanced institutional RFQ protocol. Its central pivot and radiating arms symbolize aggregated inquiry for multi-leg spread execution, optimizing order book dynamics](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-microstructure-for-institutional-digital-asset-derivatives.jpg)

## Isda Master Agreement

Meaning ▴ The ISDA Master Agreement is a standardized contractual framework for privately negotiated over-the-counter (OTC) derivatives transactions, establishing common terms for a wide array of financial instruments. </a><a href="https://prime.greeks.live/question/what-constitutes-a-defensible-process-for-documenting-close-out-calculations/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sphere split into light and dark segments, revealing a luminous core. This encapsulates the precise Request for Quote RFQ protocol for institutional digital asset derivatives, highlighting high-fidelity execution, optimal price discovery, and advanced market microstructure within aggregated liquidity pools](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-execution-framework-for-institutional-digital-asset-derivatives-request-for-quote-protocol-optimization.jpg)

## Close-Out Process

A defensible close-out calculation is a systematically documented, objectively reasonable valuation process anchored in the ISDA framework. </a><a href="https://prime.greeks.live/question/what-are-the-key-differences-between-a-prime-brokerage-agreement-and-an-isda-master-agreement/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A precision mechanical assembly: black base, intricate metallic components, luminous mint-green ring with dark spherical core. This embodies an institutional Crypto Derivatives OS, its market microstructure enabling high-fidelity execution via RFQ protocols for intelligent liquidity aggregation and optimal price discovery](https://options.greeks.live/wp-content/uploads/2025/08/institutional-crypto-derivatives-rfq-engine-high-fidelity-execution.jpg)

## Master Agreement

A Prime Brokerage Agreement is a centralized service contract; an ISDA Master Agreement is a standardized bilateral derivatives protocol. </a><a href="https://prime.greeks.live/area/economic-equivalent/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Modular circuit panels, two with teal traces, converge around a central metallic anchor. This symbolizes core architecture for institutional digital asset derivatives, representing a Principal's Prime RFQ framework, enabling high-fidelity execution and RFQ protocols](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-protocol-engine-prime-os.jpg)

## Economic Equivalent

Meaning ▴ The Economic Equivalent denotes a synthetic position or a combination of financial instruments structured to replicate the identical risk-return profile and cash flow characteristics of an alternative asset or derivative product. </a><a href="https://prime.greeks.live/area/determining-party/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sophisticated, illuminated device representing an Institutional Grade Prime RFQ for Digital Asset Derivatives. Its glowing interface indicates active RFQ protocol execution, displaying high-fidelity execution status and price discovery for block trades](https://options.greeks.live/wp-content/uploads/2025/07/principal-rfq-engine-for-digital-asset-derivatives-best-execution-1.jpg)

## Determining Party

Meaning ▴ The Determining Party is the designated entity, system component, or algorithmic agent possessing the final and binding authority to initiate, validate, or conclude a specific event, transaction, or state transition within a defined operational framework. </a><a href="https://prime.greeks.live/question/how-does-market-illiquidity-affect-the-validity-of-a-close-out-amount-calculation/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A cutaway reveals the intricate market microstructure of an institutional-grade platform. Internal components signify algorithmic trading logic, supporting high-fidelity execution via a streamlined RFQ protocol for aggregated inquiry and price discovery within a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-execution-for-digital-asset-derivatives-via-rfq-protocols.jpg)

## Close-Out Statement

Market illiquidity degrades a close-out amount's validity by replacing executable prices with ambiguous, model-dependent valuations. </a><a href="https://prime.greeks.live/question/how-did-the-lehman-brothers-bankruptcy-influence-the-adoption-of-the-2002-isda-close-out-amount-protocol/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A central engineered mechanism, resembling a Prime RFQ hub, anchors four precision arms. This symbolizes multi-leg spread execution and liquidity pool aggregation for RFQ protocols, enabling high-fidelity execution](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-framework-enabling-multi-leg-spread-strategies-for-optimized-liquidity.jpg)

## Lehman Brothers Special Financing

The Lehman bankruptcy catalyzed the adoption of the 2002 ISDA Protocol by proving the systemic risk of subjective, crisis-unfit valuations. </a><a href="https://prime.greeks.live/area/close-out-amount/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sophisticated RFQ engine module, its spherical lens observing market microstructure and reflecting implied volatility. This Prime RFQ component ensures high-fidelity execution for institutional digital asset derivatives, enabling private quotation for block trades](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-for-best-execution-protocol.jpg)

## Close-Out Amount

Meaning ▴ The Close-Out Amount represents the definitive financial value required to terminate a derivatives contract or position, typically calculated upon a default event or a pre-defined termination trigger. </a><a href="https://prime.greeks.live/area/market-data/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A transparent, multi-faceted component, indicative of an RFQ engine's intricate market microstructure logic, emerges from complex FIX Protocol connectivity. Its sharp edges signify high-fidelity execution and price discovery precision for institutional digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-optimized-for-best-execution.jpg)

## Market Data

Meaning ▴ Market Data comprises the real-time or historical pricing and trading information for financial instruments, encompassing bid and ask quotes, last trade prices, cumulative volume, and order book depth. </a><a href="https://prime.greeks.live/area/good-faith/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A gleaming, translucent sphere with intricate internal mechanisms, flanked by precision metallic probes, symbolizes a sophisticated Principal's RFQ engine. This represents the atomic settlement of multi-leg spread strategies, enabling high-fidelity execution and robust price discovery within institutional digital asset derivatives markets, minimizing latency and slippage for optimal alpha generation and capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/inst-digital-asset-deriv-rfq-os-for-optimal-high-fidelity-trade-exec.jpg)

## Good Faith

Meaning ▴ Good Faith, in a financial and operational context, denotes the adherence to honest intent and absence of fraudulent or deceptive conduct during contractual agreements and transactional processes. </a><a href="https://prime.greeks.live/area/2002-isda-master-agreement/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Detailed metallic disc, a Prime RFQ core, displays etched market microstructure. Its central teal dome, an intelligence layer, facilitates price discovery](https://options.greeks.live/wp-content/uploads/2025/07/principal-operating-system-intelligence-layer-powering-digital-asset-derivatives-rfq-protocols-for-optimal-execution.jpg)

## 2002 Isda Master Agreement

Meaning ▴ The 2002 ISDA Master Agreement represents a standardized bilateral contractual framework for over-the-counter (OTC) derivatives transactions. </a><a href="https://prime.greeks.live/area/2002-isda/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A layered, spherical structure reveals an inner metallic ring with intricate patterns, symbolizing market microstructure and RFQ protocol logic. A central teal dome represents a deep liquidity pool and precise price discovery, encased within robust institutional-grade infrastructure for high-fidelity execution](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-prime-os-orchestrating-rfq-protocols-for-high-fidelity-execution-and-multi-asset-liquidity.jpg)

## 2002 Isda

Meaning ▴ The 2002 ISDA Master Agreement constitutes a standardized contractual framework, widely adopted within the over-the-counter (OTC) derivatives market, establishing foundational terms for bilateral derivatives transactions. </a><a href="https://prime.greeks.live/question/what-constitutes-a-commercially-unreasonable-result-in-a-derivatives-close-out-scenario/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sophisticated digital asset derivatives execution platform showcases its core market microstructure. A speckled surface depicts real-time market data streams](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-core-microstructure.jpg)

## Commercially Reasonable Result

A commercially unreasonable result in a derivatives close-out is a valuation that fails the test of objective market-based evidence. </a><a href="https://prime.greeks.live/area/commercially-reasonable/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A central hub with a teal ring represents a Principal's Operational Framework. Interconnected spherical execution nodes symbolize precise Algorithmic Execution and Liquidity Aggregation via RFQ Protocol](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-microstructure-prime-os-price-liquidity-alpha.jpg)

## Commercially Reasonable

Meaning ▴ Commercially Reasonable refers to actions, terms, or conditions that a prudent party would undertake or accept in a similar business context, aiming to achieve a desired outcome efficiently and effectively while considering prevailing market conditions, industry practices, and available alternatives. </a><a href="https://prime.greeks.live/question/what-are-the-primary-differences-between-unilateral-cva-and-bilateral-cva-in-practice/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Visualizes the core mechanism of an institutional-grade RFQ protocol engine, highlighting its market microstructure precision. Metallic components suggest high-fidelity execution for digital asset derivatives, enabling private quotation and block trade processing](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-engine-core-1.jpg)

## Unilateral Revision

Unilateral CVA prices counterparty default risk in isolation; bilateral CVA provides a net, systemic valuation of reciprocal default risk. </a><a href="https://prime.greeks.live/area/commercial-reasonableness/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A precision mechanism, symbolizing an algorithmic trading engine, centrally mounted on a market microstructure surface. Lens-like features represent liquidity pools and an intelligence layer for pre-trade analytics, enabling high-fidelity execution of institutional grade digital asset derivatives via RFQ protocols within a Principal's operational framework](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-protocol-microstructure.jpg)

## Commercial Reasonableness

Meaning ▴ Commercial reasonableness refers to the standard by which a transaction or action is judged to be consistent with prevailing market practices, industry norms, and sound business judgment, particularly concerning pricing, terms, and execution methodology. </a><a href="https://prime.greeks.live/area/1992-isda-master-agreement/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Two distinct components, beige and green, are securely joined by a polished blue metallic element. This embodies a high-fidelity RFQ protocol for institutional digital asset derivatives, ensuring atomic settlement and optimal liquidity](https://options.greeks.live/wp-content/uploads/2025/07/institutional-rfq-protocol-for-digital-asset-derivatives-high-fidelity-link.jpg)

## 1992 Isda Master Agreement

Meaning ▴ The 1992 ISDA Master Agreement is a standardized bilateral contract document published by the International Swaps and Derivatives Association, serving as the primary legal framework for over-the-counter derivative transactions between two parties. </a><a href="https://prime.greeks.live/area/section-6d-notice/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, segmented cream and dark gray automated device, depicting an institutional grade Prime RFQ engine. It represents precise execution management system functionality for digital asset derivatives, optimizing price discovery and high-fidelity execution within market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-engine-optimal-institutional-digital-asset-execution-system.jpg)

## Section 6(D) Notice

Meaning ▴ A Section 6(d) Notice refers to a regulatory filing mechanism under the Commodity Exchange Act (CEA) that permits a Designated Contract Market (DCM) or Derivatives Clearing Organization (DCO) to self-certify new products, product listings, or rule amendments. </a><a href="https://prime.greeks.live/area/objective-standard/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A central teal sphere, representing the Principal's Prime RFQ, anchors radiating grey and teal blades, signifying diverse liquidity pools and high-fidelity execution paths for digital asset derivatives. Transparent overlays suggest pre-trade analytics and volatility surface dynamics](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-and-market-microstructure.jpg)

## Objective Standard

Meaning ▴ An Objective Standard denotes a quantifiable, verifiable metric or criterion established independently of subjective judgment, utilized for consistent evaluation of system performance, operational compliance, or market state. </a>

**Tags:** [ISDA Master Agreement](https://options.greeks.live/area/isda-master-agreement/), [Early Termination Amount](https://options.greeks.live/area/early-termination-amount/), [Derivatives Law](https://options.greeks.live/area/derivatives-law/), [Objective Standard](https://options.greeks.live/area/objective-standard/), [Contractual Finality](https://options.greeks.live/area/contractual-finality/), [Commercial Reasonableness](https://options.greeks.live/area/commercial-reasonableness/)	

## Discover More

- 
### [Can a Determining Party Use Only Its Internal Models to Calculate the Close out Amount under the 2002 Agreement?](https://options.greeks.live/question/can-a-determining-party-use-only-its-internal-models-to-calculate-the-close-out-amount-under-the-2002-agreement/)
![A refined object featuring a translucent teal element, symbolizing a dynamic RFQ for Institutional Grade Digital Asset Derivatives. Its precision embodies High-Fidelity Execution and seamless Price Discovery within complex Market Microstructure. The reflective surface suggests deep Liquidity Pool access for Block Trade and Private Quotation protocols.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-precision-for-optimal-execution-and-deep-liquidity-aggregation.jpg)

A Determining Party can use internal models, but only if justified by good faith and commercial reasonableness.

- 
### [How Did the 2008 Financial Crisis Influence the Interpretation of ISDA Close-Out Provisions?](https://options.greeks.live/question/how-did-the-2008-financial-crisis-influence-the-interpretation-of-isda-close-out-provisions/)
![A multi-faceted crystalline star, symbolizing the intricate Prime RFQ architecture, rests on a reflective dark surface. Its sharp angles represent precise algorithmic trading for institutional digital asset derivatives, enabling high-fidelity execution and price discovery. This encapsulates RFQ protocols, multi-leg spread optimization, capital efficiency, and market microstructure dynamics.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-high-fidelity-execution-market-microstructure-optimization-for-prime-os-alpha-generation.jpg)

The 2008 crisis shifted ISDA close-out interpretation from contractual certainty to a system focused on commercially reasonable valuations.

- 
### [What Are the Primary Differences in Close out Procedures between the 1992 and 2002 Isda Master Agreements?](https://options.greeks.live/question/what-are-the-primary-differences-in-close-out-procedures-between-the-1992-and-2002-isda-master-agreements/)
![A precision-engineered metallic and glass system depicts the core of an Institutional Grade Prime RFQ, facilitating high-fidelity execution for Digital Asset Derivatives. Transparent layers represent visible liquidity pools and the intricate market microstructure supporting RFQ protocol processing, ensuring atomic settlement capabilities.](https://options.greeks.live/wp-content/uploads/2025/08/robust-institutional-digital-asset-derivatives-trading-platform-for-optimized-rfq-protocol-execution-and-deep-liquidity-access.jpg)

The 2002 ISDA enhances close-out by replacing subjective loss calculations with an objective, commercially reasonable standard.

- 
### [What Are the Primary Grounds for Disputing a Close out Amount Calculated by an Internal Model?](https://options.greeks.live/question/what-are-the-primary-grounds-for-disputing-a-close-out-amount-calculated-by-an-internal-model/)
![A sophisticated institutional-grade system's internal mechanics. A central metallic wheel, symbolizing an algorithmic trading engine, sits above glossy surfaces with luminous data pathways and execution triggers. This abstract visualizes high-fidelity execution for digital asset derivatives, optimizing market microstructure and RFQ protocol efficiency within a Prime RFQ.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-engine-core.jpg)

Grounds for disputing a close-out amount center on failures of the calculation to be commercially reasonable in procedure and result.

- 
### [What Are the Primary Differences in the Close-Out Calculation between the Two Agreements?](https://options.greeks.live/question/what-are-the-primary-differences-in-the-close-out-calculation-between-the-two-agreements/)
![Two robust, intersecting structural beams, beige and teal, form an 'X' against a dark, gradient backdrop with a partial white sphere. This visualizes institutional digital asset derivatives RFQ and block trade execution, ensuring high-fidelity execution and capital efficiency through Prime RFQ FIX Protocol integration for atomic settlement.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-optimized-execution.jpg)

The 2002 ISDA Agreement replaces the 1992's subjective rationality with an objective, commercially reasonable standard for close-out.

- 
### [What Is the Process for Calculating a Close-Out Amount after a Force Majeure Termination Event?](https://options.greeks.live/question/what-is-the-process-for-calculating-a-close-out-amount-after-a-force-majeure-termination-event/)
![A central precision-engineered RFQ engine orchestrates high-fidelity execution across interconnected market microstructure. This Prime RFQ node facilitates multi-leg spread pricing and liquidity aggregation for institutional digital asset derivatives, minimizing slippage.](https://options.greeks.live/wp-content/uploads/2025/08/high-fidelity-rfq-execution-for-institutional-crypto-derivatives.jpg)

The process calculates a fair replacement value for terminated trades, integrating hedging costs and unpaid amounts into a single net settlement.

- 
### [Can a Determining Party Rely Solely on Internal Models for Valuation under the 2002 ISDA Master Agreement?](https://options.greeks.live/question/can-a-determining-party-rely-solely-on-internal-models-for-valuation-under-the-2002-isda-master-agreement/)
![A precise teal instrument, symbolizing high-fidelity execution and price discovery, intersects angular market microstructure elements. These structured planes represent a Principal's operational framework for digital asset derivatives, resting upon a reflective liquidity pool for aggregated inquiry via RFQ protocols.](https://options.greeks.live/wp-content/uploads/2025/07/precision-engineered-institutional-digital-asset-derivatives-trading-platform-underpinning-rfq-protocol-liquidity-aggregation-and-high-fidelity-execution.jpg)

A Determining Party may use internal models for valuation, but sole reliance is conditional upon the unavailability or unreasonableness of external market data.

- 
### [How Does the 2002 Isda Close out Amount Calculation Differ from the 1992 Loss Method?](https://options.greeks.live/question/how-does-the-2002-isda-close-out-amount-calculation-differ-from-the-1992-loss-method/)
![Sleek, modular system component in beige and dark blue, featuring precise ports and a vibrant teal indicator. This embodies Prime RFQ architecture enabling high-fidelity execution of digital asset derivatives through bilateral RFQ protocols, ensuring low-latency interconnects, private quotation, institutional-grade liquidity, and atomic settlement.](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-system-interface-for-digital-asset-derivatives-execution.jpg)

The 2002 ISDA Close-Out Amount mandates an objective, market-based calculation, replacing the 1992's subjective Loss determination.

- 
### [Why Did the ISDA Introduce the Close out Amount in the 2002 Agreement?](https://options.greeks.live/question/why-did-the-isda-introduce-the-close-out-amount-in-the-2002-agreement/)
![A multi-faceted digital asset derivative, precisely calibrated on a sophisticated circular mechanism. This represents a Prime Brokerage's robust RFQ protocol for high-fidelity execution of multi-leg spreads, ensuring optimal price discovery and minimal slippage within complex market microstructure, critical for alpha generation.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-precision-2.jpg)

The 2002 ISDA Agreement replaced flawed valuation methods with Close-Out Amount to ensure a fair, resilient close-out process.

---

## Raw Schema Data

```json
{
    "@context": "https://schema.org",
    "@type": "BreadcrumbList",
    "itemListElement": [
        {
            "@type": "ListItem",
            "position": 1,
            "name": "Home",
            "item": "https://options.greeks.live"
        },
        {
            "@type": "ListItem",
            "position": 2,
            "name": "Question",
            "item": "https://options.greeks.live/question/"
        },
        {
            "@type": "ListItem",
            "position": 3,
            "name": "Can a Determining Party Revise Its Close out Calculation after It Has Been Issued?",
            "item": "https://options.greeks.live/question/can-a-determining-party-revise-its-close-out-calculation-after-it-has-been-issued/"
        }
    ]
}
```

```json
{
    "@context": "https://schema.org",
    "@type": "Organization",
    "@id": "https://greeks.live/#organization",
    "name": "Greeks.Live",
    "url": "https://greeks.live/",
    "description": "Greeks.live is the definitive toolkit for the professional options trader, dedicated to empowering our users with institutional-grade data, advanced analytics, and a comprehensive suite of trading tools designed to provide a decisive edge in the market. Every article and guide published under the Greeks.live name is a product of our deep commitment to data-driven analysis and our mission to support the global trading community.",
    "email": "support@greeks.live",
    "logo": {
        "@type": "ImageObject",
        "url": "https://options.greeks.live/wp-content/uploads/2025/07/Greeks.Live-Logo-Icon.svg"
    },
    "hasPart": [
        {
            "@type": "WebSite",
            "name": "About Us",
            "url": "https://about.greeks.live"
        },
        {
            "@type": "WebSite",
            "name": "App Download Page",
            "url": "https://about.greeks.live/#/download/basic_trade"
        },
        {
            "@type": "WebSite",
            "name": "Newcomers' Guide",
            "url": "https://twisty-sign-c8b.notion.site/Guide-for-Greeks-live-X-Deribit-Newbies-5a08a3052822427d800af6eaf3704c8d"
        },
        {
            "@type": "WebSite",
            "name": "Knowledge Base",
            "url": "https://linktr.ee/greeks.live"
        },
        {
            "@type": "WebSite",
            "name": "Option Terminology",
            "url": "https://greekslive.notion.site/88dfc00e7c584d4d8969b6302a79a12f?pvs=4"
        },
        {
            "@type": "WebSite",
            "name": "Terms of Service",
            "url": "https://greeks.live/#/tos"
        },
        {
            "@type": "WebSite",
            "name": "Disclaimer",
            "url": "https://greeks.live/#/disclaimer"
        }
    ],
    "sameAs": [
        "https://x.com/greekslive",
        "https://youtube.com/@greeks_live?si=-KjT0Lkw4WUCI0tD",
        "https://t.me/greekslive_notifications",
        "https://t.me/greekslive",
        "https://pinterest.com/greekslive/"
    ],
    "makesOffer": [
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "RFQ Platform",
                "url": "https://rfq.greeks.live",
                "description": "Execute institutional-grade block trades for crypto options and futures. This platform provides deep, over-the-counter (OTC) liquidity via a professional Request for Quote system.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Lending Tools",
                "url": "https://lend.greeks.live",
                "description": "Manage crypto lending and borrowing activities to earn yield or secure loans. This suite of tools helps users analyze interest rates and manage collateralized debt positions.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Data Lab",
                "url": "https://greeks.live/#/deribit/tools/datalab/BTC",
                "description": "Analyze historical and real-time options data with advanced metrics. This tool is designed for backtesting strategies and identifying market trends through comprehensive data visualization.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Profit & Loss Analysis (PnL)",
                "url": "https://greeks.live/#/deribit/tools/pnl_analysis",
                "description": "Track and analyze the Profit and Loss (PnL) of your options portfolio. This tool provides detailed performance metrics to help traders evaluate and refine their strategies.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Position Visualization",
                "url": "https://greeks.live/#/deribit/tools/pv/BTC",
                "description": "Visualize complex options positions and their corresponding risk profiles. This tool generates payoff diagrams to help traders intuitively understand potential profit, loss, and exposure.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Options Calculator",
                "url": "https://greeks.live/#/deribit/tools/calculator",
                "description": "Calculate the theoretical price and risk parameters ('the Greeks') of crypto options. An essential tool for pricing new trades and analyzing the sensitivity of existing positions.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Greeks.live Main Platform",
                "url": "https://greeks.live/",
                "description": "The central hub for the Greeks.live suite of professional cryptocurrency options and derivatives trading tools. Access analytics, manage positions, and explore the ecosystem.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Community Forum",
                "url": "https://t.greeks.live",
                "description": "Join the official Greeks.live community. Connect with other traders, share insights, and receive the latest updates directly from the team.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Greeks.live for Deribit",
                "url": "http://deribit.greeks.live",
                "description": "A dedicated interface for trading on the Deribit exchange. This platform leverages Greeks.live's advanced analytics and tools specifically for users of Deribit's options and futures markets.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Greeks.live for OKX",
                "url": "http://okx.greeks.live",
                "description": "A dedicated interface for trading on the OKX exchange. This platform integrates Greeks.live's powerful analytics with the OKX marketplace, focusing on its options and derivatives products.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "GLVS.AI Trading Platform",
                "url": "https://www.glvs.ai/",
                "description": "An AI-powered platform for automated crypto options trading. Leverage advanced algorithms and data-driven signals to develop and deploy sophisticated, hands-free trading strategies.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "API Testnet & Sandbox",
                "url": "https://test.greeks.live",
                "description": "A dedicated testnet environment for developers to test their API integrations and automated trading strategies. This sandbox allows for full functionality testing without risking real funds.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        }
    ],
    "subOrganization": [
        {
            "@type": "Organization",
            "name": "GreeksLive HK Co., Limited",
            "email": "support@greeks.live",
            "telephone": "+852-56418949",
            "address": {
                "@type": "PostalAddress",
                "streetAddress": "Unit 11, 27/F, K. Wah Centre, 191 Java Road",
                "addressLocality": "Hong Kong",
                "addressRegion": "North Point",
                "addressCountry": "CN",
                "postalCode": "0000"
            },
            "geo": {
                "@type": "GeoCoordinates",
                "latitude": "22.2932357",
                "longitude": "114.2022026"
            },
            "image": "https://options.greeks.live/wp-content/uploads/2025/08/Wah-Centre-Hong-Kong.jpg"
        }
    ]
}
```

```json
{
    "@context": "https://schema.org",
    "@type": "Article",
    "mainEntityOfPage": {
        "@type": "WebPage",
        "@id": "https://options.greeks.live/question/can-a-determining-party-revise-its-close-out-calculation-after-it-has-been-issued/"
    },
    "headline": "Can a Determining Party Revise Its Close out Calculation after It Has Been Issued? \u25b4 Question",
    "description": "A Determining Party cannot unilaterally revise an issued close-out calculation; its finality ensures contractual certainty. \u25b4 Question",
    "url": "https://options.greeks.live/question/can-a-determining-party-revise-its-close-out-calculation-after-it-has-been-issued/",
    "datePublished": "2025-08-02T13:55:37+00:00",
    "dateModified": "2025-08-02T13:55:38+00:00",
    "articleSection": [
        "Question"
    ],
    "author": {
        "@id": "https://greeks.live/#organization"
    },
    "publisher": {
        "@id": "https://greeks.live/#organization"
    },
    "image": {
        "@type": "ImageObject",
        "url": "https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-platform-high-fidelity-price-discovery-and-atomic-settlement-infrastructure.jpg",
        "caption": "This close-up showcases the intricate design of a cutting-edge Crypto Derivatives OS, engineered for institutional trading. Its precision components underscore high-fidelity execution and latency optimization for multi-leg spread strategies and private quotation via advanced RFQ protocols. The system's robust infrastructure supports portfolio margin and mitigates counterparty risk, enabling efficient price discovery and best execution for complex digital asset derivatives within a dark pool environment, ensuring capital efficiency and systemic risk management."
    },
    "keywords": [
        "1992 ISDA Master Agreement",
        "2002 ISDA",
        "2002 ISDA Master Agreement",
        "Close-Out Amount",
        "Close-Out Calculation",
        "Commercial Reasonableness",
        "Commercially Reasonable",
        "Contractual Finality",
        "Counterparty Risk",
        "Derivatives Law",
        "Determining Party",
        "Early Termination Amount",
        "Economic Equivalent",
        "Good Faith",
        "ISDA Master Agreement",
        "Lehman V NPC",
        "Market Data",
        "Objective Standard",
        "Section 6(D) Notice"
    ]
}
```

```json
{
    "@context": "https://schema.org",
    "@type": "WebSite",
    "url": "https://options.greeks.live/",
    "potentialAction": {
        "@type": "SearchAction",
        "target": "https://options.greeks.live/?s=search_term_string",
        "query-input": "required name=search_term_string"
    }
}
```

```json
{
    "@context": "https://schema.org",
    "@type": "FAQPage",
    "mainEntity": [
        {
            "@type": "Question",
            "name": "How Does The Standard Of Calculation Differ Between Agreements?",
            "acceptedAnswer": {
                "@type": "Answer",
                "text": "The evolution from the 1992 ISDA Master Agreement to the 2002 version marked a significant tightening of the standards for close-out calculations. This change reflects a market-wide desire for greater objectivity and a reduction in the potential for disputes arising from subjective interpretations. The following table illustrates the key differences in the strategic approach between the two agreements."
            }
        },
        {
            "@type": "Question",
            "name": "What Is The Workflow For Correcting An Erroneous Calculation?",
            "acceptedAnswer": {
                "@type": "Answer",
                "text": "When an error is found in an issued close-out statement, a specific and disciplined workflow must be followed. A unilateral revision is not an option. The process is one of negotiation and, if necessary, litigation, where the burden of proof rests on demonstrating the correct, commercially reasonable amount."
            }
        }
    ]
}
```


---

**Original URL:** https://options.greeks.live/question/can-a-determining-party-revise-its-close-out-calculation-after-it-has-been-issued/
