Same-Day Adjustment Design: Additive vs Multiplicative

Published: March 12, 2026

Core Terms

Compute baseline pre-event average and actual event-day pre-event average over the configured adjustment window.

Additive Method

Adjustment = ActualPreEventAvg - BaselinePreEventAvg

AdjustedBaseline(t) = NonAdjustedBaseline(t) + Adjustment

Multiplicative Method

Factor = ActualPreEventAvg / BaselinePreEventAvg

AdjustedBaseline(t) = NonAdjustedBaseline(t) * Factor

Cap Controls

Apply configurable caps (for example ±20%) to prevent over-adjustment and preserve settlement defensibility.