Risk Equivalence definition

Risk Equivalence refers to the objective of maintaining between Members an equivalent level of risk with respect to their respective Member Interests, all as more specifically described in Section 10.1 below.
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Examples of Risk Equivalence in a sentence

  • To the extent not detrimental to the viability and financial success of the overall operations of the Company, the Members will work in good faith with each other to accomplish and maintain Risk Equivalence through appropriate measures, distributions or voluntary contributions to capital; provided, however, that nothing in this Agreement shall be deemed to require additional capital contributions by the Members.

  • To the extent not detrimental to the viability and financial success of the overall operations of the Company, except as otherwise provided in this Agreement, the Members will work in good faith with each other to accomplish and maintain Risk Equivalence through appropriate measures, distributions or voluntary contributions to capital; provided, however, that nothing in this Agreement shall be deemed to require additional capital contributions by the Members.