FDM.3:4.4 - Add scenarios and performance without replacing the contract

For a scenario, state the additional assumptions: market values, exercise, default, recovery or another condition relevant to the use. Derive the resulting conditional flows. If a probability or expectation is needed, obtain an adequate basis for it and retain its conditions.

Keep the contractual schedule available alongside expected or scenario flows. An expectation is an account across possible outcomes under a model; it is not another amount that every counterparty must pay. Likewise, an observed payment belongs to the actual-performance account. FDM.4 establishes its effect on remaining positions.

A financial choice or valuation may need discounting, risk treatment or comparison with alternatives. Supply the qualified flows to the relevant financial method; the event model alone does not select those decision rules.