Definition
The Bank of Russia describes repo through a first and second leg, including haircuts and revaluation.[22] Current parameters are not established or offered here. Explaining repo as secured financing is useful but does not replace the legal form of a particular contract.
What to check
Know both prices, the term, securities, interim payments and actions after revaluation. Receiving money in the first leg is not irreversible income. The haircut between asset value and cash amount is not the same as the time-price rate. Revaluation can create an additional funding need, while collateral does not eliminate all counterparty and liquidity risks.
Limitation
The [repo collateral training scheme](/guides/repo-collateral-haircut/) separately calculates the cash amount, reverse payment and conditional top-up without describing an available service.