Formula
Weighted baskets, averaging windows, publication lags, caps, floors, FX conversion and a fixed portion. The concepts in the contract, on the screen, with the arithmetic exposed.
The formula page turns the wording of an index-linked escalation clause into arithmetic you can read on one screen: a weighted basket of index components, an averaging window and publication lag, a base period, caps and floors, FX conversion, and a fixed non-escalating portion. Escalake checks that the component weights resolve to a whole, shows each component's contribution once the data is in, and locks a formula version before every reset.
Formula builder · draft version 4
Validation · weights sum to 1.00 · base period set · ready to lock
Split the adjustment across as many index components as the clause names. Escalake checks that the weights resolve to a whole and shows each component's contribution once the data is in.
Component contributions once data is in
Clauses rarely use a single month. Set a rolling average and a lag so the calculation matches the wording, and Escalake picks the exact observations that satisfy it.
Window resolution · 2024-Q3, 3-mo avg, 1-mo lag
Controls
Bound the adjustment per period or cumulatively. The binding limit is shown on the result.
Convert a foreign-denominated index into the contract currency with a stated rate source.
Lock a version before a reset. The history shows what changed between versions and when.
You enter the index components the clause names, their weights, the base period, and the timing rules. Escalake checks the weights sum to one, resolves the averaging window and publication lag against real observations, and applies any cap, floor, FX conversion, or fixed portion. The result is a composite adjustment factor.
An averaging window means the calculation uses the mean of several months rather than a single reading, which smooths short spikes. A publication lag means it uses data from a month or two earlier, because official statistics are not final on the day the period ends.
Yes. A formula can weight any number of index components, plus a fixed portion that does not escalate. Each component shows its own contribution to the adjustment once the data is in, so you can see which index moved the number.
Lock a formula version before each reset. If an amendment changes a weight, a base period, or a cap, you create a new version, and the history shows what changed between versions and when. Past adjustments keep pointing at the version that produced them.
Interpretation is human. Arithmetic is not.
Explore
We use cookies to run Escalake and to understand site traffic. Choose Accept Minimum for essential cookies plus anonymous visit counting only, or Accept All to also let us link activity to your account. Read our Cookie Policy and Privacy Policy.