> For the complete documentation index, see [llms.txt](https://adamdavidlong.gitbook.io/lawsnap-guide-to-smart-contracts/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://adamdavidlong.gitbook.io/lawsnap-guide-to-smart-contracts/applications/smart-contract-use-cases/derivatives/in-general-derivatives.md).

# In General: Derivatives

A derivative is a contract that someone uses to manage risk: if your business depends on the price of jet fuel, or the interest rate in Japan, or the exchange rate between British Pounds and Chinese Yuan, then you can use derivatives to help manage this risk. A "derivative" contracts is a contract whose value is 'derived' from another asset.

Businesses all over the world use derivatives to manage risk, and the value of the market is immense.