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Derivatives are essential to the global economy, allowing firms to manage risk effectively. Effective functioning of this market requires strong legal foundations; without common legal standards, firms risk unique contractual languages that could lead to disagreements and lengthy negotiations. For 35 years, the ISDA Master Agreement has facilitated standardization by offering a common contractual template for trading relationships between derivatives counterparties. This template outlines key terms, such as definitions of default and contract termination conditions, fostering confidence in transactions. It also enables customization of relationships and inclusion of various transactions if defaults occur, ensuring clarity on amounts owed.