Smart derivative contracts: detaching transactions from counterparty credit risk

Introducing deterministic termination rules to eliminate counterparty risk in smart derivatives

CLICK HERE TO VIEW THE PDF

Christian Fries and Peter Kohl-Landgraf describe a smart derivative contract with a fully deterministic termination that removes many of the inefficiencies in collateralised over-the-counter transactions. The automatic and deterministically defined termination procedure in the smart contract represents an option right. This feature replaces counterparty credit risk with contractually defined termination risk

We consider a special variant of a smart derivative

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: