The principle of khiyar al-shart, which is a conditional option to cancel a previous agreed sale within a specific number of days is applied in the ISSBNT model where the Approved User may be granted a grace period to rescind the Leg 1 sale and return the purchased securities to the Approved Supplier without any cost to be incurred between the Approved Supplier and Approved User.

For the avoidance of doubt, provided that the Approved User is the owner and in possession of the purchased securities, it reserves the right to exercise the option (khiyar) based on mutually agreed terms and conditions. The Approved User may lose the right should there be any impediments that would prevent the Approved User from returning the securities to the Approved Supplier such as the disposal by the Approved User of the purchased securities. Collateral is enforced through a close-out and set-off mechanism.