(Reuters) – UBS and the Swiss government agreed on Friday on how they will share losses linked to the bank’s emergency takeover of Credit Suisse, clearing the way for the deal to close in the coming days.

Here are some of the key points of the agreement:

* The guarantee covers a volume of around 44 billion Swiss francs ($48.85 billion), which corresponds to approximately 3% of the combined assets of the merged UBS Group.

* The specific portfolio details are confidential, but the assets are mainly derivatives, loans, legacy assets and structured products. UBS will report on the portfolio in more detail when it publishes its second-quarter results, due on Aug 31.

* There is no set end date for the wind-down.

* The assets covered by the loss guarantee are expected to be revalued in the third quarter of 2023, after the takeover by UBS. Losses arising from this revaluation are not covered by the loss guarantee and will have to be borne by UBS.

* A net approach will be adopted meaning realised gains, relative to the current Credit Suisse valuation, on the realisation of assets will generally be offset against losses.

* UBS will pay an initial set-up fee of 40 million Swiss francs payable in two tranches to cover the set-up and advisory costs.

* The bank will also pay an annual maintenance fee of 36 million francs to cover certain ongoing federal costs, payable in four instalments at the end of each quarter, with the first payment due on 31 December 2023.

* In the event of the guarantee being drawn, UBS will also pay an annual risk premium of between 0% and 4% of 9 billion francs, depending on the already realised losses and those still expected. The greater these losses, the higher the respective risk premium.

* The agreement contains no statements on any federal government participation in losses exceeding 14 billion francs.

* Credit Suisse’s AT1 bonds are not covered by the loss guarantee. Swiss regulators have written down about 16 billion Swiss francs as part of the lender’s rescue triggering hundreds of lawsuits.

($1 = 0.9008 Swiss francs)

(Reporting by Noele Illien; Editing by Tomasz Janowski)

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