> ## 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.

# K_hedged

<table><tr><th>Description</th><td>The part of capital requirements that recognizes eligible 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_21">\[MAR50.21]</a></td></tr><tr><th>Notation</th><td>$K_{hedged}$</td></tr><tr><th>Formula</th><td>$K_{hedged}= \sqrt{\left( \rho \cdot \sum_{c} (SCVA_c - SNH_c) - IH\right)^2 + (1-\rho^2)\cdot \sum_c (SCVA_c - SNH_c)^2 + \sum_c HMA_c} $</td></tr></table>