*As a second simple example, assume the result of an investment with a uniform distribution where all outcomes between a profit of 30 and a loss of 20 are equally likely. In this case, the VaR with a 99% confidence level is 19.5. This is because the probability that the loss will lie between 19.5 and 20 is 0.5/50 = 1%. (Note that we divide the range of losses we are interested in (0.5) by the total range of losses (50) because all outcomes are equally likely.*