Export Risk Mitigation

In order to minimize export risk the following have to be achieved:

1. Incentives need to be set to drive the market to prefer trades which decrease participating network’s trade imbalances.

2. Funds need to be reserved in order to clear and settle imbalances that could not have been settled through the mutual clearing of imports and exports.

Both of these goals are achieved through the Clearing House’s fee structure. Additionally, the Clearing House sets import/export limits for each participating network in order to ensure that trade imbalances remain within tolerable margins.