How Can a Derivatives Contract Be Used to Hedge against a Potential 51% Attack?

An exchange or large holder of a low-difficulty coin could purchase a deep out-of-the-money (OTM) put option on that coin. If a 51% attack occurs, the coin's price would likely crash, and the put option would gain significant value, offsetting the losses incurred from the attack or the resulting market panic.

This acts as a form of insurance, allowing the hedger to limit their downside risk for the cost of the option premium.