"Haircut": 1. Secured lending. An amount deducted from the current market value of an asset used as collateral, to calculate the maximum amount of a loan secured against that asset. For example; if the market value of the asset were Â£100,000 and the haircut was 2%, the maximum amount of the related secured loan would be Â£98,000 (= Â£100,000 LESS 2%). 2. The amount of a loss (or an expected loss) on asset, as a percentage of the total value of the asset. For example in this context;a 50% haircut on Greek debt of EUR 200bn means a loss of EUR 100bn (= 50%) and a recovery of EUR 100bn. 3. A fee or commission, expressed as a percentage of the total value of the related transaction.