## Rate Cutoff

Key

**in OI Term Rate refers to the number**

*Rate Cutoff***of business days, which when subtracted from the end**

*N***of the referenced period**

*Tₙ***over which the realized overnight index is observed, leads to a date**

*[T₀,Tₙ]***such that the overnight index value**

*Tₑ***set on that date is deemed to apply to all subsequent daily intervals until**

*Iₑ***for the purpose of calculating the average index over the period**

*Tₙ***as explained in OI Term Rate**

*[T₀,Tₙ]*Note the value

**is generally published with some delay at some later date after**

*Iₑ*

*Tₑ*It follows that the last

**of the effective overnight index fixings in the observation period**

*N***are identical and all equal**

*[T₀,Tₙ]*

*Iₑ*In the vanilla case where the effective overnight index value always equals the corresponding realized value, the number

**equals 1.**

*N*Note

**cannot exceed the number**

*N***of all overnight fixings occurring in the period**

*n*

*[T₀,Tₙ]*