Understanding ED Calculations
Applies to: Administrators, Finance Managers, Risk Analysts
This guide explains the mathematical formulas and calculations used to determine Emergency Deposit eligibility and limits.
Key Formulas
Net Available Balance Calculation
Net Available Balance = Total Deposit – Total Withdrawals – Active Emergency Deposit Amounts
Components:
- Total Deposit: Sum of all successful deposits
- Total Withdrawals: Sum of all approved withdrawals
- Active ED Amounts: Sum of all unpaid emergency deposits
Base Value Calculation
Base Value = Minimum of (Net Available Balance, Selected Account Balance)
The system takes the lower value between your Net Available Balance and your current Selected Account Balance.
Maximum Allowable Amount Calculation
The maximum emergency deposit amount is calculated using tiered percentages:
Tiered Percentage Structure
| Base Value Range | Percentage | Maximum Amount Formula |
|---|---|---|
| 100 to 500 | 50% | Base Value × 0.50 |
| 500 to 2,000 | 30% | Base Value × 0.30 |
| 2,000 to 5,000 | 20% | Base Value × 0.20 |
| 5,000 to 10,000 | 15% | Base Value × 0.15 |
| 10,000 and above | 10% | Base Value × 0.10 |
Calculation Example
Scenario:
- Net Available Balance: $8,000
- Selected Account Balance: $6,000
- Base Value = Min($8,000, $6,000) = $6,000
Since $6,000 falls in the 5,000-10,000 range:
- Percentage = 15%
- Max Allowable Amount = $6,000 × 0.15 = $900
Eligibility Conditions
Mandatory Requirements
- At Least One Deposit:
Total Deposit > $100 - Margin Level:
Current Margin Level < 150% - Functionality Enabled: Emergency Deposit feature activated in CRM
Balance Requirements
- Positive Net Available Balance:
Net Available Balance > 0 - Sufficient Base Value:
Base Value ≥ Minimum Threshold (100)
Real-time Validation
The system performs these checks in real-time:
- ✅ Pre-check before showing Emergency Deposit option
- ✅ Validation during amount entry
- ✅ Final verification before submission
Audit and Logging
All calculations are logged for:
- Compliance: Regulatory reporting requirements
- Audit: Internal and external audit trails
- Analysis: Risk management and pattern analysis
- Dispute Resolution: Customer inquiry handling