> 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-tarf.md).

# EKI TARF

Target Accrual Redemption Forward; Target Profit Forward with EKI Barrier

{% hint style="info" %}
The EKI Target Forward features a European style KI barrier 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 Target version.
{% endhint %}

### **Payoff Diagram:**

<figure><img src="https://3557203473-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FYQ7mk2lqrd7KNTuAuSYT%2Fuploads%2Ft2uv8OyogiUb2qjzDVzy%2FRHS%20EKI%20TARF.png?alt=media&amp;token=077101e1-2074-44d7-8191-fb9d81f1da48" alt="EKI TARF Payoff Profile - TARF with a European Knock-In Barrier"><figcaption></figcaption></figure>

### **Payoff at Expiry:**

At expiry if EURUSD fixes:

* Above the Strike, the client is fully protected at the 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 Strike and above the Knock-In Barrier, the client can participate in the favourable movement and transact at the improved Spot Rate.
* Below the Knock-In Barrier, the client will find itself obligated to trade at the Strike level on 200% of the Notional.