NAV trigger
The right to terminate a master agreement as a result of the decline in net asset value of a hedge fund counterparty. Often there are three levels of trigger: Monthly; Quarterly and Annually, and you may find yourself embraced in a tedious argument about whether this should be “rolling” (that is, judged for the period from any day) or “point-to-point” - judged from a defined day to the end of the period following that day.
In practice an official NAV is only “cut” once for every “liquidity period”, and it is hard to see how a credit officer, however enthusiastic, could define an effective Net Asst Value as at any other time.
All rather tiresome, and quite unnecessary if you have the right to jack up initial margin at your discretion.