> ## 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.

# Pro_rata

export const productName = "Atoti FRTB";

## Pro-rata capital allocation

Naming pattern: Measures with “Pro-rata” behavior follow the name
pattern:*Main Measure Name* Pro-Rata.

Pro-Rata is one of the approaches implemented in {productName} to
decompose a non-linear measure down to additive components.

Depending on the specified context values, a Pro-Rata measure behaves
as:

* **bottom-up calculation**: charges computed at leaf level (usually,
  trades) are scaled proportionally so that they sum to a charge
  computed at
  [ReferenceLevel](./referencelevel).
  Scaled leaf-level charges are additive and can be rolled up to any
  level;

  `Pro-Rata Capital Allocation := Leaf * Scale`

* **“Russian Doll” calculation**: charges are computed recursively
  along the levels in a specified hierarchy (for instance,
  organizational hierarchy), so that the sum at each level is equal to
  the pro-rata charge for a parent.

  `Scale := Parent / {sum of Siblings}`

In both methods the charge computed at [ReferenceLevel](./referencelevel) is decomposed into additive components.
Additionally, the impact of query filters on the results can be controlled using [ReferenceLevelVisualTotalsMode](./referencelevelvisualtotalsmode).

The main difference between the approaches is that the capital
allocation per “Russian Doll” method will take into account the netting
within aggregation nodes, wheres in bottom-up approach only the
leaf-level netting matters.

Follow this link to see the measures with the described behavior:
[Pro-Rata Measures](../variations/pro_rata).