> For the complete documentation index, see [llms.txt](https://eako-capital.gitbook.io/eako-user-guide/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://eako-capital.gitbook.io/eako-user-guide/eki-pivot-tarf.md).

# EKI Pivot TARF

TARF with both EKI and Pivot Feature

{% hint style="info" %}
The EKI Pivot TARF is a variation to the standard Pivot TARF, which offers a broader range by introducing EKI barriers.\
\
This features a pair of European style KI barriers on the client's OTM obligations.  Thus there is only an OTM settlement when the Fixing Rate occurs above / below a given knock-In Barrier Rate; otherwise if the fixing is between the Strike and the KI barrier there are no obligations on either party.  The addition of the European barrier will tend to lead to a worse Strike Rate than on a vanilla Pivot version.
{% endhint %}

### **Payoff Diagram:**

<figure><img src="https://3557203473-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FYQ7mk2lqrd7KNTuAuSYT%2Fuploads%2F4gR0JUVQlDcBVvumSH1u%2FEKI%20Pivot.png?alt=media&amp;token=cabf6d73-b3de-4722-9d94-7d7c51075fef" alt=""><figcaption></figcaption></figure>

### **Payoff at Expiry:**

At expiry if EURUSD fixes:

* Above the High EKI Barrier, the client will find itself obligated to sell EUR / buy USD at the (Put) High Strike level on 200% of the Notional.
* Between the High EKI Barrier and the (Put) High Strike, the client can participate in the favourable movement and transact at the improved Spot Rate.
* Above the Pivot Level, but below the (Put) High Strike, the client is fully protected and can sell EUR / buy USD at the (Put) High Strike on 100% of the Notional subject to the target condition.  Once the target is reached the strategy is cancelled and the client will become unhedged.
* Below the Pivot Level, but above the (Call) Low Strike, the client is fully protected and can sell USD / buy EUR at the (Call) Low Strike on 100% of the Notional subject to the target condition.  Once the target is reached the strategy is cancelled and the client will become unhedged.
* Between the Low EKI Barrier and the (Call) Low Strike, the client can participate in the favourable movement and transact at the improved Spot Rate.
* Below the Low EKI Barrier, the client will find itself obligated to sell USD / buy EUR at the (Call) Low Strike level on 200% of the Notional.