Solutions / Lacima Analytics / Contract Types
User-Defined
Capture Any Non-Standard Energy and Commodity Contract Payoff.
Your User-Defined Contracts Questions
How can I account for the complex characteristics of non-standard energy and commodity financial contracts?
Is it possible to capture and manage the unique payoffs of over-the-counter energy or commodity deals?
Our User-Defined Contracts Solution
Value, hedge, and risk manage user-defined, customised payoffs for any derivative-style contract including indexation contracts. The User-Defined Contracts module’s built-in code editor provides the flexibility to define any payoff model for even the most complex contract structures.
Define payoffs via standard mathematical notation with reference to risk factors, curves & constants and run simulations of multiple correlated forward curves, factoring in risk variables like price, load, temperature, wind speed and solar irradiance.
Powerful analysis tools allow historical lookbacks and averaging over simulated spot and forward prices.
The flexible User-Defined Contracts editor lets you accommodate any non-standard structure.

The User-Defined Contracts Features
- Define Custom Payoffs
Capture any unique or complex payoff with the built-in editor. - Flexible Contract Structuring
Define unique contract structures using mathematical notation including risk factors, curves & constants.
- Correlated Risk Factor Simulations
Simulate multiple correlated forward curves to assess the impact of key risk factors like price, load and demand. - Historical and Simulated Data Analysis
Improve forecasting and scenario analysis with averaged historical and simulated spot and forward prices.
Related Solutions
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Lacima Analytics > Thermal Generation
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Lacima Analytics > LNG
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