Can a Financial Derivative Be Considered Fungible?

Standardized derivative contracts, such as futures traded on a regulated exchange, are generally fungible. Each contract for the same underlying asset, expiration, and size is interchangeable.

However, Over-The-Counter (OTC) derivatives are typically customized agreements, making them non-fungible. Non-Fungible Tokens (NFTs) can represent unique, non-fungible derivative positions in decentralized finance (DeFi).