In general, terms used in this Standard have the meanings defined in other Regulations and Standards issued by the Central Bank. In particular, for this Standard, the following terms have the meanings defined in this section.

1. a.Credit Valuation Adjustment (CVA) reflects the adjustment of default risk-free prices of derivatives due to a potential default of the counterparty. Regulatory CVA may differ from CVA used for accounting purposes. Unless explicitly specified otherwise, the term CVA in this document means regulatory CVA.
2. b.CVA Risk is defined as the risk of losses arising from changing CVA values in response to changes in counterparty credit spreads and market risk factors that drive prices of derivative transactions.
3. c.Fund is a financial vehicle, whether established inside or outside the UAE, engaged in the activity of receiving investors' money for the purpose of investment against the issue of fund units of equal value and rights. This includes, but is not limited to, mutual funds, private equity funds and hedge funds, open-end funds, closed-end funds, debt funds and hedge funds.
4. d.Mandate means instruction to manage a pool of capital, or a particular pile of funds, using a specific strategy and within certain risk parameters.
5. e.Potential Future Exposure (PFE) is an estimate of the potential increase in exposure to counterparty credit risk against which a bank must hold regulatory capital.