1. Close-out costs AVAs shall be calculated at valuation exposure level ('individual close-out costs AVAs').

2. When an institution has calculated a market price uncertainty AVA for a valuation exposure based on an exit price, the close-out cost AVA may be assessed to have zero value.

3. Where an institution applies the derogation referred to in paragraph 5 of Article 105 of Regulation (EU) No 575/2013, the close-out costs AVA may be assessed to have zero value, on the condition that the institution provides evidence that it is 90 % confident that sufficient liquidity exists to support the exit of the related valuation exposures at mid-price.

4. Where a valuation exposure cannot be shown to have a zero close-out costs AVA, institutions shall use the data sources defined in Article 3. In this case the calculation of the close-out costs AVA shall be performed as described in paragraphs 5 and 6 of this Article.

5. Institutions shall calculate close-out costs AVAs on valuation exposures related to each valuation input used in the relevant valuation model.

(a) The granularity at which those close-out costs AVAs shall be assessed shall be one of the following: