# defaulter pays

- Canonical URL: https://www.gerhardmerk.de/defaulter-pays
- Post ID: 604434
- Modified: 2026-09-07T19:48:00+00:00
- Language: en

## Definition

Defaulter pays is a risk-management approach in which a participant is responsible for ensuring that its failure does not impose an unfunded loss on others. Protection such as margin, guarantees, or contributions is arranged in advance to meet liabilities attributable to that participant, limiting the need for the wider group to absorb the shortfall.

## Machine-readable

- Generator: Merk Knowledge 2.0.0