# 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: 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: ``` GET https://docs.divaprotocol.io/introduction/what-is-diva-protocol/how-it-works/compliance-feature.md?ask= ``` The question should be specific, self-contained, and written in natural language. 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.