Valuation Adjustment Mechanism (VAM) is a direct translation of "Valuation Adjustment Mechanism", but it better reflects its essence, so we hear the daily betting agreement, the problems involved in fact, has nothing to do with gambling. It is actually a form of option. Through the design of the terms, the betting agreement can effectively protect the interests of investors.

The betting agreement has been applied in foreign investment banks' investment in domestic companies. A betting agreement is an agreement between the acquirer (including the investor) and the ceding party (including the financier) about the uncertainty of the future when reaching an agreement on mergers and acquisitions (or financing).

Chinese Name:Betting Agreement

Foreign Name:Valuation Adjustment Mechanism

Short Name:VAM

Class:A Form of Option