How Can a DAO Use a ‘Master Agreement’ to Manage OTC Trades?

A master agreement, such as an ISDA (International Swaps and Derivatives Association) Master Agreement, is a standardized contract framework that governs all over-the-counter derivatives transactions between two parties. It simplifies the trading process by providing a single set of legal terms for multiple trades, clearly defining payment obligations, events of default, and netting provisions, thus reducing legal and counterparty risk.