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Derivatives are crucial in the global economy for allowing firms to hedge risks, but effective market functioning requires strong legal foundations. Without common legal standards, firms would use different contractual languages, leading to disagreements and prolonged negotiations. The ISDA Master Agreement has addressed this by providing a standardized contractual template for trading relationships between derivatives counterparties for 35 years. This template outlines core terms, such as default definitions and termination conditions, enabling firms to transact confidently with a shared understanding of the market. Additionally, it permits customization of relationships and covers a range of transactions in case of defaults on amounts owed.