A robust liquidity transfer pricing (LTP) process should correctly allocate the costs, benefits, and risks of liquidity across the bank as a whole. Option A is incorrect because long-term funding is generally more expensive than short-term funding, thereby increasing rather than reducing the real cost of the liquidity cushion. Option B is incorrect because contingent liquidity risks should be priced ex-ante, not just after a drawdown occurs. Option C is incorrect because a matched-maturity marginal cost of funds approach is considered an industry best practice, whereas a pooled average cost of funds approach is less accurate.