A barrier cap whereby protection ceases to exist or deactivates only if the floating interest rate crosses the barrier on a rollover date (fixing/ resetting). The knock-out feature helps reduce the premium of this cap in comparison with that of a standard cap. The cap can either dies out for the entire remaining life of the cap or only for the resetting period. Interest rate caps can typically knock in on a variety of underlying rates/ prices, including LIBOR, commodity, FX and equity.