Define: Hedging Costs

How is 'Hedging Costs' defined in a legal contract?

• Hedging Costs means the cost differences associated with currency exchange. Specifically, it denotes the difference, in percentage terms, on each valuation date between the price of the 3-month maturity exchange rate between the reference currency and the base currency of the fund, and the actual rate of the same exchange. Seen in 17 SEC filings
• Hedging Costs means any losses, expenses, and costs associated with the unwinding, termination, liquidation, adjustment, obtaining, replacement, or reestablishment of any underlying or related hedging arrangements. Seen in 11 SEC filings
• Hedging Costs means the total cost to the issuer (and/or its affiliates) of terminating, transferring, liquidating, obtaining or reestablishing any swap agreement, financing arrangement, or other hedging transaction associated with the issuance of notes, as determined by the Issuer at its sole discretion. Seen in 10 SEC filings
• Hedging Costs means the total cost, fees, expenses, or taxes to or incurred by the issuer (and/or its affiliates) of terminating, transferring or liquidating any underlying assets and/or related hedging, funding or other transaction related to the issuance of the notes or their redemption, as determined by the Issuer at its sole discretion. Seen in 6 SEC filings
• Hedging Costs means any costs associated with any transaction or trading position entered into or held by the Program Preference Shareholder to hedge, directly or indirectly, their returns associated with the Program Preference Shares. Seen in 5 SEC filings
• Hedging Costs means any amount due from the borrower under a Hedging Agreement, excluding any Hedging Termination Payment. Seen in 4 SEC filings

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Which definition should you use?

🤔 Our AI Legal Assistant has combined and improved the above descriptions to create market-standard 'Genie definitions' below, with guidance on which documents and which industry to use for each.

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Genie Definition 1

Hedging Costs means the difference between projected and actual costs related to currency exchange or underlying assets across all relevant transactions.

Relevant Contract Types

• Currency Swap Contract
• Financial Derivative Contract
• International Trade Agreement

Relevant Circumstances

• Currency exchange rate variation
• Assets' value depreciation
• Uncertain financial market trends

Relevant Sectors

• Financial Services
• Trade
• Investment

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Genie Definition 2

Hedging Costs means any expenses incurred from changing or ending any hedging arrangements or transactions.

Relevant Contract Types

• Derivative Trading Contract
• Futures Contract

Relevant Circumstances

• Dissolution of Hedging arrangements
• Adjustments in hedging strategies
• Re-establishment of hedging arrangements

Relevant Sectors

• Investment Banking
• Asset Management
• Commodities Trading

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Genie Definition 3

Hedging Costs means any scheduled payments from a borrower under a hedging agreement, excluding termination payments.

Relevant Contract Types

• Borrowing Agreement
• Loan Contract

Relevant Circumstances

• Borrower default
• Repayment schedule changes
• Loan obligations under hedging agreements

Relevant Sectors

• Private Equity
• Banking
• Finance

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