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Derivatives are essential for firms to hedge risks in the global economy, requiring strong legal foundations. The ISDA Master Agreement, established for 35 years, provides a standardized template for derivatives trading relationships. It includes core contractual terms, such as defining default and contract termination conditions, ensuring a common understanding in the market. This allows firms to transact confidently and resolve issues efficiently. The agreement also allows customization of relationships and a broad range of transactions in case of default.