> ## Documentation Index
> Fetch the complete documentation index at: https://docs.fincept.in/llms.txt
> Use this file to discover all available pages before exploring further.

# Loss Given Default (LGD) Model

> Beta regression model for Loss Given Default, bounded between 0 and 1. Essential for Basel IRB capital calculations and IFRS 9 expected credit loss estimation. Models the proportion of exposure lost when default occurs. [Tier: ENTERPRISE, Credits: 10]



## OpenAPI

````yaml api-specs/ml.json post /quantlib/ml/regression/lgd
openapi: 3.1.0
info:
  title: FinceptQuantLib API - ML
  description: >-
    Machine Learning and Credit Risk module endpoints for FinceptQuantLib API.
    Pro Tier access required (5 credits per request). Covers credit scoring,
    model validation, regression models, clustering, anomaly detection, feature
    engineering, and preprocessing.
  version: 3.0.0
  contact:
    name: Fincept API Support
    url: https://fincept.in
servers:
  - url: https://api.fincept.in
    description: Fincept API Production Server
security:
  - APIKeyHeader: []
tags:
  - name: quantlib-ml
    description: Machine Learning and Credit Risk Analytics
    x-displayName: ML
paths:
  /quantlib/ml/regression/lgd:
    post:
      tags:
        - quantlib-ml
      summary: Loss Given Default (LGD) Model
      description: >-
        Beta regression model for Loss Given Default, bounded between 0 and 1.
        Essential for Basel IRB capital calculations and IFRS 9 expected credit
        loss estimation. Models the proportion of exposure lost when default
        occurs. [Tier: ENTERPRISE, Credits: 10]
      operationId: lgd_model
      requestBody:
        required: true
        content:
          application/json:
            schema:
              type: object
              required:
                - X
                - 'y'
              properties:
                X:
                  type: array
                  description: Features (collateral value, seniority, recovery costs, etc.)
                  items:
                    type: array
                    items:
                      type: number
                  example:
                    - - 80000
                      - 1
                      - 5000
                    - - 120000
                      - 0
                      - 3000
                    - - 50000
                      - 1
                      - 7000
                'y':
                  type: array
                  description: LGD values (0-1, proportion of loss)
                  items:
                    type: number
                  example:
                    - 0.25
                    - 0.65
                    - 0.18
                predict_X:
                  type: array
                  description: Optional features for LGD prediction
                  items:
                    type: array
                    items:
                      type: number
                  example:
                    - - 95000
                      - 1
                      - 4500
      responses:
        '200':
          description: LGD model results
          content:
            application/json:
              schema:
                type: object
                properties:
                  success:
                    type: boolean
                    example: true
                  data:
                    type: object
                    properties:
                      predictions:
                        type: array
                        items:
                          type: number
                        description: Predicted LGD values (0-1)
                        example:
                          - 0.22
        '401':
          $ref: '#/components/responses/UnauthorizedError'
        '402':
          $ref: '#/components/responses/InsufficientCreditsError'
        '422':
          $ref: '#/components/responses/ValidationError'
components:
  responses:
    UnauthorizedError:
      description: Authentication information is missing or invalid
      content:
        application/json:
          schema:
            type: object
            properties:
              detail:
                type: string
                example: Invalid API key
    InsufficientCreditsError:
      description: Insufficient credits for this operation
      content:
        application/json:
          schema:
            type: object
            properties:
              detail:
                type: string
                example: Insufficient credits. This endpoint requires 5 credits.
    ValidationError:
      description: Request validation error
      content:
        application/json:
          schema:
            type: object
            properties:
              detail:
                type: array
                items:
                  type: object
                  properties:
                    loc:
                      type: array
                      items:
                        type: string
                    msg:
                      type: string
                    type:
                      type: string
  securitySchemes:
    APIKeyHeader:
      type: apiKey
      in: header
      name: X-API-Key
      description: >-
        API key for authentication. Get your key at
        https://api.fincept.in/auth/register

````