Common use of Variation Margin Clause in Contracts

Variation Margin. If CAFX determines, in its sole discretion, that the net market value of all of your open Transactions has declined and the unrealised loss when marked to market exceeds a percentage or fixed amount as CAFX may advise, of the notional value of the open Transactions, you are required to post Variation Margin as stated in the Margin Call issued by CAFX. Each time the net market value of all of your open Transactions decline and the unrealised loss when marked to market further increase, CAFX may issue a Margin Call whereby you are required to post additional Variation Margin in the amount stated in the Margin Call within one (1) clear Business Day. Payment of Variation Margin is due on or before the close of business on the next Business Day after the day CAFX issues Margin Call to you.