Shari'a-compliant hedging contract liabilities are calculated first based on the replacement cost for Shari'a-compliant hedging contracts (obtained by marking to market) where the contract has a negative value. When an eligible bilateral netting contract is in place that meets the conditions as specified in the 'bilateral netting agreements' conditions specified in Appendix F, the replacement cost for the set of Shari'a-compliant hedging contracts exposures covered by the contract will be the net replacement cost.