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Derivatives are crucial for risk management in the global economy, but effective functioning requires strong legal foundations. Without common legal standards, firms face unique contractual languages, leading to disagreements and extended negotiations. The ISDA Master Agreement has provided essential standardization for 35 years by offering a common template for trading relationships between derivatives counterparties. It outlines key contractual terms, like default definitions and termination conditions, enabling firms to trade with confidence. This agreement also allows customization of contractual relationships, accommodating various transactions and ensuring a clear process for resolving issues, particularly in default situations.