> ## Documentation Index
> Fetch the complete documentation index at: https://docs.activeviam.com/llms.txt
> Use this file to discover all available pages before exploring further.

# IH

<table><tr><th>Description</th><td>a parameter that gives recognition to the reduction in CVA risk across all counterparties arising from the bank’s use of index hedges.</td></tr><tr><th>Reference</th><td><a href="https://www.bis.org/basel_framework/chapter/MAR/50.htm?inforce=20230101&published=20200708#paragraph_MAR_50_20230101_50_24">\[MAR50.24]</a></td></tr><tr><th>Notation</th><td>$IH$</td></tr><tr><th>Formula</th><td>$IH =\sum_{i} \left( RW_{i} \cdot M_i \cdot B_{i} \cdot DF_i \right)$</td></tr></table>