> For the complete documentation index, see [llms.txt](https://docs.divaprotocol.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.divaprotocol.io/introduction/what-is-diva-protocol/how-it-works/compliance-feature.md). # Compliance feature DIVA Protocol is leading the way in bridging the gap between decentralized and traditional finance by implementing a compliance feature that allows traditional financial institutions to use DIVA Protocol while complying with existing KYC and AML regulations. This is achieved by giving the creator of the derivative contract the possibility to restrict the transfer of the position tokens to holders of a pre-defined NFT, such as a non-transferrable KYC token issued by a bank or a third party provider. Furthermore, each derivative contract is a separate entity in DIVA Protocol. This guarantees the segregation of funds, ensuring that assets held in one pool remains entirely separate from those held in any other pool. By implementing these two critical features, DIVA Protocol directly addresses a key concern of regulators regarding the interaction of traditional financial institutions with DeFi protocols. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.divaprotocol.io/introduction/what-is-diva-protocol/how-it-works/compliance-feature.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.