> ## 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.

# Default risk charge

The **[Default Risk Charge](../../../../../../../cube/drc-non-sec-default-risk-charge)** is calculated according to [MAR22.25](https://www.bis.org/basel_framework/chapter/MAR/22.htm?inforce=20230101\&published=20200327#paragraph_MAR_22_20230101_22_25) and [MAR22.26](https://www.bis.org/basel_framework/chapter/MAR/22.htm?inforce=20230101\&published=20200327#paragraph_MAR_22_20230101_22_26) from the **Weighted Net JTD Long/Short** and **HBR** measures.

It is first calculated independently for each bucket, then summed over the buckets.

For obligors who have been flagged as high yield and distressed funds, the Default Risk Charge is calculated for those funds on a standalone basis before being included in the sum over the buckets.