For standard CDS the recovery rate and thus the protection payment in case of a default event depends on the reference obligation’s price calculated in the auction process after a default event, which implies an uncertainty in the protection payment. In some cases, e.g. when a credit event seems to be quite probable, an investor aims to eliminate this uncertainty. Recovery Swaps provide a way to do so. This article gives a short introduction to recovery products and their mechanisms and highlights the calculation of the invested capital for Recovery Swaps in practice.