The Tolerance Level of Open Contracts are imposed to ensure that member-firms have the necessary financial capacity to meet all potential obligations which may arise from trading in Derivatives. In addition, the implementation of a Tolerance Level of Open Contracts regime represents the core instrument for the Clearing House to avoid excessive positions and market concentration.

The Tolerance Level of Open Contracts are expressed in terms of the Total Position permitted in the same underlying, Net Position allowed in the same underlying, and finally the Net Position acceptable in the maturity or exercise month and in the maturity or exercise day for the same underlying.

Clearing Members and Asigna have their own real time Risk Management System in order to keep track of all the intraday market changes. Although, Clearing Members set their own limits for their Clients.

Tolerance Level of Open Contracts established by Asigna are:

**   Tolerance Level of Open Contracts that always should be respected.

NOTE: Hedge Position Declaration for the spot exercise or tender date should be reported at least one week in advance.

For Tolerance Level of Open Contracts purposes the short put positions of Options Contracts within its relevant Underlying Asset Group will be treated as long positions after been multiplied by the Delta Factor, while long put positions will be treated as short positions on the referred Underlying Asset Groups after been multiplied by the Delta Factor. For example, the Net Position for the "IPC" Serie is calculated as follows: 

Clients of Domestic Omnibus Accounts are subject to the limits for Clearing Members, Brokers that Manage Domestic Omnibus Accounts and their Clients, according to the section m) of the Twentieth of the "Mandatory rules for corporations and trusts participating in the establishment and operation of a market derivative contracts" (“Mandatory Rules”).

Foreign Omnibus Accounts (Foreign Financial Entities), which trade according the Sixtieth of the prudential regulations to which participants in the market for listed futures and options will adhere in their operations, will be required to monitor the Tolerance Level of Open Contracts of their clients, which are subject to the limits for Clearing Members, Traders that Manage Domestic Omnibus Accounts and their Clients, as set in section m) of the Twentieth of the Mandatory Rules.