> ## 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.

# DRC non-sec default risk charge

<Badge color="gray" size="lg">[drc\_sa](../tags/drc-sa)</Badge>

|                 |                                                                                                                                                                                                                                               |
| --------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| **Description** | The total capital charge for default risk non-securitisations as if all positions were under SA                                                                                                                                               |
| **Variations**  | [incremental](./incremental), [pro\_rata](./pro_rata), [euler](./euler), [netted](./netted), [reported](./reported)                                                                                                                           |
| **Reference**   | [\[MAR22.26\]](https://www.bis.org/basel_framework/chapter/MAR/22.htm?inforce=20230101\&published=20200327#paragraph_MAR_22_20230101_22_26)                                                                                                   |
| **Notation**    | $DRC$                                                                                                                                                                                                                                         |
| **Formula**     | $\displaystyle DRC = \sum_{b \in \text{Buckets}} DRC_b$<br />$\displaystyle DRC_b = \max\left[\left(\sum_{i \in \text{Long}} RW_i \cdot netJtD_i\right) - HBR \cdot \left(\sum_{i \in \text{Short}} RW_i \cdot \|netJtD_i\|\right); 0\right]$ |