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Contract Indexation Negativefloor Applier Tool

Apply an explicit lower floor to an index change before adjusting the contract base.

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Description

Take max(floor,indexChange) and multiply base by one plus that applied change.

Financial accounting arithmetic tracks amounts, balances, fees and allocations on a declared currency and sign basis. An algebraically consistent result does not authorize a transaction or establish an amount legally due.

Take max(floor,indexChange) and multiply base by one plus that applied change.

When to use this tool

Use Contract Indexation Negativefloor Applier when you need a specified monetary balance or allocation calculation.

How to use the tool and how it works

  1. Enter base, indexChange, floor. Use the units and conventions below.
  2. Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
  3. Read appliedChange, adjusted. Use the output convention below.

Take max(floor,indexChange) and multiply base by one plus that applied change.1

Input fieldMeaning and unitsAccepted input
baseBaseRequired. Finite number.
indexChangeIndex ChangeRequired. Finite number.
floorFloorRequired. Finite number.
Output fieldInterpretationReturned shape
appliedChangeApplied ChangeRequired. Finite number.
adjustedAdjustedRequired. Finite number.
json
{
  "input": {
    "base": 100,
    "indexChange": -0.1,
    "floor": -0.05
  },
  "output": {
    "appliedChange": -0.05,
    "adjusted": 95
  }
}

Limitations and assumptions

  • Changes are fractions and the floor may be negative. Signed bases and changes below -1 are not independently excluded here; no contractual or legal indexation rule is determined.
  • Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
  • Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.

Alternative or Complementary methods

Reconcile source ledgers and governing agreements using the intended currency precision and accounting policy. Include omitted fees, tax, timing and legal requirements before acting on a result.

References

  1. Calculation and input contract: finance/contract-indexation-negativefloor-applier — tool.io

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