Margin Factors are the numbers expressed, security-wise, in percentage terms. These factors are used to determine Initial Margin requirement for the trades to be accepted for guaranteed settlement by CCIL. [Initial margin for a trade is computed by multiplying the total consideration for the trade by the Margin Factor applicable for the concerned security]. Margin Factors are arrived at for each security based on Value at Risk for five day holding period (at 99% confidence level) for such securities. For illiquid and Semi-liquid securities, Value at Risk numbers for such securities are stepped up by using appropriate multiplicants. Further, these security-wise VaR numbers are subjected to tenor based floors.