How Do Interest Rate Derivatives Manage Risk Compared to the Fee-Rate Risk in Cryptocurrency?

Interest rate derivatives, such as swaps and futures, are used to hedge against or speculate on changes in interest rates. They allow institutions to fix their borrowing costs or manage the value of fixed-income assets.

Fee-rate risk is the uncertainty of future transaction costs. While both manage price/cost uncertainty, interest rate derivatives are used for long-term financial planning, whereas fee-rate risk is a short-term operational cost concern.