CompliFi Protocol proposes a decentralised mechanism for issuing a wide range of financial derivatives that are fully collateralised at all times and, therefore, carry no counterparty risk. The protocol also features minimal governance, no margin calls or liquidations, and limited sensitivity to blockchain network congestion. The trade-offs required to achieve these properties are finite settlement time, fixed upper bounds on the derivatives’ payoff functions and an increased working capital requirement for the issuance process.
