DIVA Protocol
  • 👋Welcome
  • 🔅Introduction
    • Derivative contracts
    • What is DIVA Protocol
      • What problem does it solve
      • How it works
        • Reference assets
        • Payoff curves
        • Collateral
        • Oracles
        • Settlement
          • Timelines
          • Challenge
          • Status
          • Fast settlement
          • Fallback data provider
        • Fees
        • Compliance feature
      • Vision
      • Terminology
    • What is DIVA Token
      • Owner election mechanism
      • Token distribution
    • DIVA Development Fund
    • FAQ
  • 🌈DIVA App
    • What is DIVA App
    • Overview
    • Create position tokens
    • Trade position tokens
    • Add liquidity
    • Remove liquidity
  • ⚙️Guides
    • DIVA App Training
      • Prepare
      • Testnet
      • Create
      • Trade
      • Add
      • Remove
      • Settle
      • Redeem
      • Fees
    • Quiz
  • 🪄Use cases
    • Overview
    • Insurance
      • Credit default protection
      • Agrarian insurance
      • DeFi Hack insurance
      • Peg insurance
    • Yield optimization
      • Bullish accumulation
      • Bearish accumulation
    • Risk management
      • Downside protection
      • Increasing cost protection
    • Directional bets
      • Downside bet
      • "Bottom-Is-In" bet
      • Upside bet
      • "Top-Is-In" bet
    • Leverage
  • 👨‍🎓Pricing derivatives
    • Introduction
    • Underlying value
    • Volatility
    • Time
  • ⚓Oracle integrations
    • Overview
    • Tellor
  • ⚒️For developers
    • Overview
    • Technical resources
    • Smart contracts
      • Functions
        • Core protocol functions
        • Getter functions
        • Setter functions
        • ABI
      • Contract addresses
      • Example scripts
    • TheGraph
      • DIVA subgraphs
      • Whitelist subgraph
    • Project ideas
  • 📱Contact & Media Links
    • Social media
  • 👨‍🎓Technical Blog
    • Flash loans in DIVA Protocol
    • NDVI outcome reporting guide for Tellor Reporters
    • Enabling capital efficiency in DeFi
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  1. Use cases

Risk management

Use derivatives to protect against adverse events

Derivatives are powerful tools to protect against adverse movements. In this section, we give two examples how users can protect themselves against falling asset prices as well as rising ETH gas fees.

PreviousBearish accumulationNextDownside protection

Last updated 3 years ago

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