Source: https://guthlabs.ai/docs/instruments/exchange-rate-pass-through-pip-value-calculator/implementation/

instrument implementation / implementation-contract

# Exchange Rate Pass-Through / Pip Value Calculator implementation

A source-bound implementation contract for Exchange Rate Pass-Through / Pip Value Calculator; deployment and executable qualification remain separate.

Status: **VERIFIED_CLEAN**Lifecycle: **implementation-contract**

## Binding contract

This record describes what an executable surface must bind and validate. It does not claim that a public calculator, package, or production route is deployed.

**Record owner**: Guth Instruments

**Lifecycle**: verified-clean

**Evidence ID**: t5-200

**Effect**: Computation or source lookup only

## Input and validation requirements

A zero exchange rate causes an undefined division and must be rejected. The specification also leaves the pip-size regime for JPY pairs, the sign convention for position size, and conversion from the formula's quote-currency-dependent result into account currency insufficiently specified.

## Required corrections

No binding erratum is attached to this unique-name record. Implementers must still preserve the declared units, domain, and failure behavior.

## Inspectable interface fixture

The sample below is evidence for interface and validation tests, not a production implementation.

````
{
  "inputs": {
    "currency_pair": "EUR/GBP",
    "account_currency": "USD",
    "position_size": 100000,
    "pip_size": 0.0001,
    "current_rate": 1.25,
    "current_rate_definition": "USD per GBP"
  },
  "expected_outputs": {
    "pip_value": 8
  },
  "working": "pip_value=(pip_size/exchange_rate)*position_size\n=(0.0001/1.25)*100000\n=0.00008*100000\n=8 USD per pip"
}
````

## Other records

[01**Overview**](<https://guthlabs.ai/docs/instruments/exchange-rate-pass-through-pip-value-calculator/>)[02**Mechanism**](<https://guthlabs.ai/docs/instruments/exchange-rate-pass-through-pip-value-calculator/mechanism/>)[04**Qualification**](<https://guthlabs.ai/docs/instruments/exchange-rate-pass-through-pip-value-calculator/qualification/>)

## Sources and evidence

These pointers bind the page to evidence. They do not grant authority or collapse verification into deployment.

- `VERIFIED_LEDGER.json`

- `evidence-tranche5/tranche5-results.json`