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Derivatives are crucial for firms to hedge their risks in the global economy, but strong legal foundations are essential for the market to function effectively. The Easter Master Agreement, in place for 35 years, standardizes contractual language for derivatives counterparties. This common template defines key terms like default and contract termination conditions, ensuring all parties operate with a shared understanding. Firms can customize their relationships and include various transactions, with clear guidelines for resolving any issues, including defaults and owed amounts.