There is no cap on the Collateral Requirement as it depends on the Annual Contract Value. Upon contract execution, the Collateral Requirement is 50% of the Annual Contract Value. The Collateral Requirement increases to 100% of the Annual Contract Value on June 1, 2019. The Annual Contract Value is the number of RECs to be delivered annually under the contract times the winning bid price for the system. The Collateral Requirement is subject to a $50,000 minimum through the first 10 delivery years.