When effective bilateral netting contracts are in place, RC will be the net replacement cost and the add-on will be A_Net as calculated according to paragraph 96 (i) to 96 (vi) of Appendix 2. The haircut for currency risk (H_fx) should be applied when there is a mismatch between the collateral currency and the settlement currency. Even in the case where there are more than two currencies involved in the exposure, collateral and settlement currency, a single haircut assuming a 10-business day holding period scaled up as necessary depending on the frequency of mark-to-market will be applied.