A cliquet (cliquet product) that has only the basic features without any additional (exotic) elements (as opposed to exotic cliquets). The most common type of a plain vanilla cliquet is the ratchet option. A ratchet option pays the sum of ratchet amounts either periodically or as a lump sum at maturity. By composition, a vanilla cliquet is a series of forward-starting options that follow a regular schedule over the lifespan of the product, “cliqueting” monthly, quarterly, semi-annually, or annually.

It is also known as a standard cliquet or a vanilla cliquet.