The risk-control structure for LVTS rests on four elements:

• the multilateral net debit position of each participant is calculated on a payment-by-payment basis, in real time, by the central computer supporting the system;
• the participants’ net debit positions are subject to ceilings;
• the participants have together pre-pledged, to the Bank of Canada, appropriate securities with a value sufficient to cover the largest single permitted net debit position, thus ensuring settlement for the participants even if one of them were to default;
• the Bank of Canada has agreed to guarantee settlement in the extremely unlikely circumstance that more than one LVTS participant were to fail on the same day during LVTS operating hours and the sum of the exposures of failed institutions were to exceed the collateral pledged to support their positions.