The risk that a counterparty to a swap will not make a due payment on a specific reset day. Differently stated, it is the risk that a counterparty will not receive a single swap payment (swaplet) because the other counterparty is simply unwilling or unable to pay. Therefore, this risk doesn’t constitute the risk of cancellation or the potential loss of revaluation (marking to market) if the swap has a net present value. The swaplet risk is alternatively termed a clean risk.