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Can a Financial Derivative Be Created Based on the Finality Time of a Transaction?

Yes, a derivative can be created to bet on or hedge against the time taken for a transaction to achieve a specified level of finality.
Greeks.Live07.11.25

Can a Financial Derivative Be Created Based on the Finality Time of a Transaction?

Yes, a derivative could be created where the payout is contingent on the time it takes for a transaction to achieve finality (e.g. six confirmations). This would essentially be a bet on network congestion and block processing speed.

Such a derivative could be used by high-frequency traders to hedge against execution latency risk.

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