What Is a Credit Support Annex (CSA)?
A CSA is a legally binding document that forms part of the ISDA Master Agreement. It governs the terms of collateral exchange between two parties in an OTC derivatives transaction.
It specifies the types of collateral accepted, the valuation methodology, the thresholds for posting collateral, and the timing of margin calls. The CSA is the risk management heart of an uncleared OTC trade.
Glossar
CSA
Framework ⎊ Cryptocurrency Security Agreements, or CSAs, represent standardized legal contracts governing the custody and administration of digital assets, particularly crucial within the evolving landscape of institutional investment in crypto.
Credit Support Annex
Collateral ⎊ A Credit Support Annex (CSA) within cryptocurrency derivatives functions as a triparty agreement detailing the exchange of collateral ⎊ typically cryptocurrency or stablecoins ⎊ to mitigate counterparty credit risk arising from open positions in futures, swaps, or options.