Derivative contracts are financial instruments that have been used to hedge exposure to the risk of unfavorable price changes for a very long time. They serve a useful purpose, especially to natural users of derivatives such as producers and consumers of primary commodities. 

The terms of derivative contracts including forwards and options can be easily and unambiguously expressed and implemented as computer programs commonly referred to as "smart contracts". Deploying these contracts to blockchain networks creates decentralized markets where natural users of derivatives can trade without the need for middlemen and central counterparties such as banks or exchanges and clearinghouses.  

 

ProDerivatives proposes a set of contract interfaces and reference implementations to help qualified entities in the creation and operation of decentralized derivative markets in trustless networks. 

Services: 

  • Contract design, development and testing 

  • Back-to-back derivative operations from deployment to final settlement 

  • Market price index calculation and publication 

  • Counterparty credit risk monitoring and mitigation via margin calculations and collateralization 

  • Identification of eligible counterparties 

  • Integrated contract management and trading environment