{ "model": { "rank": 7202, "code": "thing-q66295", "model_id": "vr.tr.derivative-q66295", "name": "derivative", "purpose": "Let an agent explain derivatives and their main types, relay how they are priced, traded and regulated from finance references, describe uses and risks with attribution, and distinguish derivatives from the underlying securities and from insurance, without giving personal investment advice.", "family": "Thing Registry", "category": "Information and virtual systems", "status": "research-draft", "kind": "thing", "plane": "INF", "domain": "INF.MED", "industry": "", "version": "", "url": "/models/thing/q66295/", "tier": 2, "score": 56, "payload": { "layer": "wikidata", "aliases": [ "currency swap agreement", "Weather derivative", "forward contract", "power derivative", "swap", "structured product", "forward rate agreement", "interest rate cap and floor", "interest rate derivative", "exotic derivative", "credit derivative", "STIRT", "Turbo", "exchange-traded derivative contract", "currency swap", "credit default swap", "Total return swap", "PAUG" ], "aliasCount": 18, "merged": 18, "knownIn": 56, "facets": null, "markers": [], "lexicalClass": "", "senseRank": null, "alsoRegisteredAs": "vr.tr.derivative-substance", "source": { "dataset": "wikidata", "item": "Q66295", "url": "https://www.wikidata.org/wiki/Q66295", "license": "CC0 1.0" } }, "research": { "vercy": "1.0-draft", "publication": { "status": "research-draft", "adjudicationStatus": "unreviewed", "publishableCanonical": false, "generatedAt": "2026-09-13T05:02:28Z", "providers": [ "Claude" ], "breadth": "written by Claude from model knowledge without web access - no source was read, every claim is a lead to verify", "pass": 2, "wave": 3, "engine": "claude" }, "metaModel": { "id": "THING-Q66295", "registryId": "vr.tr.derivative-q66295", "name": "derivative", "version": "0.2.0-wave.3", "entryKind": "thing", "family": "Thing Registry", "domain": [ "INF.MED" ], "status": "research-draft" }, "canonicalUrl": "https://ver.cy/models/thing/q66295/", "model": { "registry_id": "vr.tr.derivative-q66295", "name": "derivative", "purpose": "Let an agent explain derivatives and their main types, relay how they are priced, traded and regulated from finance references, describe uses and risks with attribution, and distinguish derivatives from the underlying securities and from insurance, without giving personal investment advice.", "definition": "A financial contract whose value is derived from the value of an underlying asset, rate, index or event, including forward contracts, futures, options, swaps such as interest rate and currency swaps, structured products that combine derivatives with securities, and specialised contracts such as weather and power derivatives; derivatives are used for hedging, speculation and arbitrage, traded on exchanges or over the counter, and regulated after the 2008 crisis through central clearing and reporting.", "what_it_is_for": "Hedging, speculation and risk transfer.", "affordances": [ "explain types", "relay pricing and trading", "describe uses and risks", "distinguish from underlying assets" ], "distinguishing_features": [ "Derived value", "Leverage", "Exchange and OTC markets", "Post-crisis regulation" ], "appearance": "Not a visible object; a contract.", "visual_identification": [ "Contract deriving value from an underlying", "Forwards, futures, options, swaps, currency swaps, structured products, weather and power derivatives", "The underlying security is the asset itself; insurance transfers risk under insurable interest rules" ], "physical_properties": [ { "quantity": "OTC derivatives notional", "typical_range": "hundreds of trillions", "unit": "USD", "note": "BIS estimates" }, { "quantity": "Black-Scholes model", "typical_range": "1973", "unit": "year", "note": "option pricing" }, { "quantity": "Dodd-Frank and EMIR reforms", "typical_range": "2010-2012", "unit": "period", "note": "" } ], "families_and_kinds": [ "forward contracts and futures", "options", "swaps including interest rate, currency and credit default swaps", "structured products", "commodity, weather and power derivatives", "exotic derivatives" ], "related_models": [ { "relation": "is a kind of", "target": "financial instrument", "why": "in registry terms" }, { "relation": "is a kind of", "target": "security", "why": "in registry terms" }, { "relation": "is a kind of", "target": "financial product", "why": "in registry terms" }, { "relation": "is priced by", "target": "Black-Scholes model", "why": "and related models" } ], "identifiers": [], "standards_and_regulation": [ "Dodd-Frank Act and EMIR on clearing and reporting", "ISDA master agreements", "Exchange rules and margin requirements", "Accounting standards such as IFRS 9" ], "failure_modes_and_hazards": [ "Agents giving personal investment advice", "Leverage-driven losses", "Counterparty risk in OTC contracts", "Confusing derivatives with the underlying" ], "in_scope": [], "out_of_scope": [], "characteristics": [] }, "sources": [], "structure": { "bundles": [ { "id": "understand", "name": "Understand", "description": "What derivatives are.", "rationale": "Definition.", "layers": [ { "id": "definition", "name": "Definition", "description": "Definition and types.", "findings": [ { "id": "definition-finding", "name": "Definition", "description": "Definition.", "questions": [ { "text": "What is a derivative, and how do forwards, futures, options and swaps differ?", "kind": "definition" }, { "text": "Is the question about derivatives in general, a type, or a personal investment decision the model does not advise on?", "kind": "boundary" } ] } ] }, { "id": "special", "name": "Special", "description": "Special types.", "findings": [ { "id": "special-finding", "name": "Special", "description": "Special.", "questions": [ { "text": "What are currency swaps, structured products, weather derivatives and power derivatives?", "kind": "definition" }, { "text": "Which entry fits the specific type?", "kind": "action" } ] } ] } ] }, { "id": "market", "name": "Market", "description": "Pricing and trading.", "rationale": "Sources.", "layers": [ { "id": "pricing", "name": "Pricing", "description": "Pricing.", "findings": [ { "id": "pricing-finding", "name": "Pricing", "description": "Pricing.", "questions": [ { "text": "How are derivatives priced, from no-arbitrage forwards to option models?", "kind": "provenance" }, { "text": "Which references are standard?", "kind": "provenance" } ] } ] }, { "id": "trading", "name": "Trading", "description": "Trading and clearing.", "findings": [ { "id": "trading-finding", "name": "Trading", "description": "Trading.", "questions": [ { "text": "How are derivatives traded on exchanges and over the counter, and how does central clearing work?", "kind": "provenance" }, { "text": "Which sources are cited?", "kind": "provenance" } ] } ] } ] }, { "id": "use", "name": "Use", "description": "Uses and risks.", "rationale": "Attribution.", "layers": [ { "id": "hedging", "name": "Hedging", "description": "Hedging and speculation.", "findings": [ { "id": "hedging-finding", "name": "Hedging", "description": "Hedging.", "questions": [ { "text": "How do firms and investors use derivatives to hedge, speculate and arbitrage, in general terms?", "kind": "provenance" }, { "text": "Is the user asking for personal advice, which needs a licensed adviser?", "kind": "boundary" } ] } ] }, { "id": "risks", "name": "Risks", "description": "Risks and crises.", "findings": [ { "id": "risks-finding", "name": "Risks", "description": "Risks.", "questions": [ { "text": "What risks do derivatives pose, and what role did they play in 2008 and other crises, with positions attributed?", "kind": "provenance" }, { "text": "Is the presentation neutral?", "kind": "boundary" } ] } ] } ] }, { "id": "context", "name": "Context", "description": "Regulation and history.", "rationale": "Context.", "layers": [ { "id": "regulation", "name": "Regulation", "description": "Regulation.", "findings": [ { "id": "regulation-finding", "name": "Regulation", "description": "Regulation.", "questions": [ { "text": "How are derivatives regulated under Dodd-Frank, EMIR and exchange rules?", "kind": "provenance" }, { "text": "Which entry fits financial regulation?", "kind": "action" } ] } ] }, { "id": "history", "name": "History", "description": "History.", "findings": [ { "id": "history-finding", "name": "History", "description": "History.", "questions": [ { "text": "How did derivatives develop from rice futures and tulip options to modern markets?", "kind": "provenance" }, { "text": "Which entry fits the history of finance?", "kind": "action" } ] } ] } ] } ] }, "openQuestions": [ "Should swaps and options be separate primary entries?", "How should finance references be linked?", "The registry entry has merged aliases naming specific contract types; should they be split off?" ], "statistics": { "bundles": 4, "layers": 8, "findings": 8, "questions": 16 } }, "draft": { "generator": "vr.draft.v3", "status": "draft-generated", "researched": false, "archetype": "work, medium or creative form", "method": "Written from the archetype playbook - what this kind of thing needs beyond identity and provenance - and from the structure that recurred across 6,333 models already researched by two engines. Applied to this entry by rule. No source was read for this thing and no claim here is researched. This entry carries no facets of its own, so they were inferred from its domain - a guess about a whole domain applied to one thing.", "facetsInferred": true, "nextPass": "A researcher replaces this draft with a sourced specification. Treat every sentence below as a proposal to argue with.", "purpose": "Give an agent a durable, checkable way to recognise a derivative, record what state it is in, and decide what may be done with it.", "whatItIs": "Let an agent explain derivatives and their main types, relay how they are priced, traded and regulated from finance references, describe uses and risks with attribution, and distinguish derivatives from the underlying securities and from insurance, without giving personal investment advice.", "characteristics": { "substance": "information", "origin": "conceptual", "agency": "inert" }, "whatYouCanDoWithIt": [ "read and interpreted", "observed and measured" ], "distinguishingFeatures": [ "Names folded into this entry, which a task may need to split apart again: currency swap agreement, Weather derivative, forward contract, power derivative, swap, structured product, forward rate agreement, interest rate cap and floor, interest rate derivative, exotic derivative, credit derivative, STIRT.", "18 finer distinctions are held as aliases rather than separate entries, because telling them apart needs a task that asks for it.", "Described in 56 Wikipedia languages, which is a measure of how widely the thing is known, not of how important it is." ], "openQuestionsForResearch": [ "Which of the bundles below does a real task actually need, and which are ceremony?", "What does this thing have that the facets do not capture at all?", "Which neighbouring kind is most often confused with a derivative, and on what evidence are they told apart?" ], "whatItIsMadeOf": "content that has to be carried by something else", "physicalCharacter": [ "Does nothing on its own; everything it does, something else did to it.", "These come from the domain this entry sits in rather than from the entry itself, so treat them as a first guess about the whole domain applied to one thing." ], "whatCanBeDoneWithIt": [ "read it and act on what it says", "observe it, measure it, record its state" ], "howItIsRecognised": [ "What is seen is a copy or a performance, not the work. Recognising the work means recognising the content through whatever is carrying it." ], "relatedModels": [ { "relation": "covers", "note": "Finer kinds folded into this entry because telling them apart needs a task that asks for it. Each is a model waiting to be split out when one does.", "targets": [ "currency swap agreement", "Weather derivative", "forward contract", "power derivative", "swap", "structured product", "forward rate agreement", "interest rate cap and floor", "interest rate derivative", "exotic derivative", "credit derivative", "STIRT" ] } ], "standing": "Described in 56 Wikipedia languages, which measures how widely it is written about rather than how important or how common it is. 18 finer distinctions are held inside this entry as names rather than as separate models.", "structure": { "bundles": [ { "id": "identity-and-classification", "name": "Identity, naming and classification", "description": "How an agent tells one derivative from another, and a derivative from things that resemble it.", "rationale": "Recognition comes before every other claim. Without stable identity nothing else in the model can be trusted to be about the same thing twice.", "layers": [ { "id": "naming-and-identifiers", "name": "Names and identifiers", "description": "The names this thing goes by and the identifiers that survive translation and time.", "findings": [ { "id": "preferred-name-and-aliases", "name": "Preferred name, aliases and local names", "description": "Which name to use, which names mean the same thing, and which merely sound similar.", "questions": [ { "id": "preferred-name-and-aliases-q01", "text": "What identifies and describes the name of a derivative, and in what units or vocabulary?", "kind": "definition", "answer_data": [ "identifiers", "types and classes", "values with units", "explicit unknowns" ] }, { "id": "preferred-name-and-aliases-q02", "text": "Who or what asserted this about the name of a derivative, by which method, and when was it true?", "kind": "provenance", "answer_data": [ "authority", "method", "evidence", "event time", "knowledge time" ] }, { "id": "preferred-name-and-aliases-q03", "text": "What may an agent decide or do once the name of a derivative is known, and what must it refuse?", "kind": "action", "answer_data": [ "permitted actions", "preconditions", "refusals", "escalation" ] } ] }, { "id": "stable-identifiers", "name": "Stable identifiers and external keys", "description": "Identifiers that keep pointing at this kind of thing across systems and languages.", "questions": [ { "id": "stable-identifiers-q01", "text": "What identifies and describes an identifier for a derivative, and in what units or vocabulary?", "kind": "definition", "answer_data": [ "identifiers", "types and classes", "values with units", "explicit unknowns" ] }, { "id": "stable-identifiers-q02", "text": "Who or what asserted this about an identifier for a derivative, by which method, and when was it true?", "kind": "provenance", "answer_data": [ "authority", "method", "evidence", "event time", "knowledge time" ] }, { "id": "stable-identifiers-q03", "text": "What may an agent decide or do once an identifier for a derivative is known, and what must it refuse?", "kind": "action", "answer_data": [ "permitted actions", "preconditions", "refusals", "escalation" ] } ] } ] }, { "id": "classification-and-granularity", "name": "Classification and granularity", "description": "Where a derivative sits among kinds, and how finely a task needs to cut it.", "findings": [ { "id": "kind-and-parents", "name": "Kind, parents and neighbouring kinds", "description": "The classes this thing belongs to and the ones it is next to.", "questions": [ { "id": "kind-and-parents-q01", "text": "What identifies and describes the kind of a derivative, and in what units or vocabulary?", "kind": "definition", "answer_data": [ "identifiers", "types and classes", "values with units", "explicit unknowns" ] }, { "id": "kind-and-parents-q02", "text": "Who or what asserted this about the kind of a derivative, by which method, and when was it true?", "kind": "provenance", "answer_data": [ "authority", "method", "evidence", "event time", "knowledge time" ] }, { "id": "kind-and-parents-q03", "text": "What may an agent decide or do once the kind of a derivative is known, and what must it refuse?", "kind": "action", "answer_data": [ "permitted actions", "preconditions", "refusals", "escalation" ] } ] }, { "id": "distinguishing-features", "name": "Distinguishing features", "description": "What separates a derivative from the things most often confused with it.", "questions": [ { "id": "distinguishing-features-q01", "text": "What identifies and describes what distinguishes a derivative, and in what units or vocabulary?", "kind": "definition", "answer_data": [ "identifiers", "types and classes", "values with units", "explicit unknowns" ] }, { "id": "distinguishing-features-q02", "text": "Who or what asserted this about what distinguishes a derivative, by which method, and when was it true?", "kind": "provenance", "answer_data": [ "authority", "method", "evidence", "event time", "knowledge time" ] }, { "id": "distinguishing-features-q03", "text": "What may an agent decide or do once what distinguishes a derivative is known, and what must it refuse?", "kind": "action", "answer_data": [ "permitted actions", "preconditions", "refusals", "escalation" ] } ] } ] } ] }, { "id": "state-and-lifecycle", "name": "State and lifecycle", "description": "The states a derivative passes through and the events that move it between them.", "rationale": "Most decisions about a thing depend on what state it is in now, which is a claim with a time on it, not a property.", "layers": [ { "id": "lifecycle-stages", "name": "Lifecycle stages", "description": "From coming into existence to ceasing to be one of these.", "findings": [ { "id": "stages-and-transitions", "name": "Stages and transitions", "description": "The stages worth naming and what moves a derivative between them.", "questions": [ { "id": "stages-and-transitions-q01", "text": "What identifies and describes the lifecycle of a derivative, and in what units or vocabulary?", "kind": "definition", "answer_data": [ "identifiers", "types and classes", "values with units", "explicit unknowns" ] }, { "id": "stages-and-transitions-q02", "text": "Who or what asserted this about the lifecycle of a derivative, by which method, and when was it true?", "kind": "provenance", "answer_data": [ "authority", "method", "evidence", "event time", "knowledge time" ] }, { "id": "stages-and-transitions-q03", "text": "What may an agent decide or do once the lifecycle of a derivative is known, and what must it refuse?", "kind": "action", "answer_data": [ "permitted actions", "preconditions", "refusals", "escalation" ] } ] } ] }, { "id": "observations-and-status", "name": "Observations and current status", "description": "What is observed about a derivative, how often and by whom.", "findings": [ { "id": "observation-record", "name": "Observation record", "description": "How an observation of a derivative is recorded so that it can be superseded rather than overwritten.", "questions": [ { "id": "observation-record-q01", "text": "What identifies and describes an observation of a derivative, and in what units or vocabulary?", "kind": "definition", "answer_data": [ "identifiers", "types and classes", "values with units", "explicit unknowns" ] }, { "id": "observation-record-q02", "text": "Who or what asserted this about an observation of a derivative, by which method, and when was it true?", "kind": "provenance", "answer_data": [ "authority", "method", "evidence", "event time", "knowledge time" ] }, { "id": "observation-record-q03", "text": "What may an agent decide or do once an observation of a derivative is known, and what must it refuse?", "kind": "action", "answer_data": [ "permitted actions", "preconditions", "refusals", "escalation" ] } ] } ] } ] }, { "id": "content-and-access", "name": "Content, encoding and access", "description": "What a derivative says, how it is encoded and who may read it.", "rationale": "An informational thing carries content that can be copied, versioned and withheld, none of which its physical carrier explains.", "layers": [ { "id": "content-and-encoding", "name": "Content and encoding", "description": "The content itself, its format and its language.", "findings": [ { "id": "content-and-format", "name": "Content, format and language", "description": "What a derivative contains and in what form it is held.", "questions": [ { "id": "content-and-format-q01", "text": "What identifies and describes the content of a derivative, and in what units or vocabulary?", "kind": "definition", "answer_data": [ "identifiers", "types and classes", "values with units", "explicit unknowns" ] }, { "id": "content-and-format-q02", "text": "Who or what asserted this about the content of a derivative, by which method, and when was it true?", "kind": "provenance", "answer_data": [ "authority", "method", "evidence", "event time", "knowledge time" ] }, { "id": "content-and-format-q03", "text": "What may an agent decide or do once the content of a derivative is known, and what must it refuse?", "kind": "action", "answer_data": [ "permitted actions", "preconditions", "refusals", "escalation" ] } ] } ] }, { "id": "access-and-rights", "name": "Access, rights and retention", "description": "Who may read, copy or change it, and for how long it is kept.", "findings": [ { "id": "access-rules", "name": "Access rules and retention", "description": "The permissions attached to a derivative and the period it survives.", "questions": [ { "id": "access-rules-q01", "text": "What identifies and describes access to a derivative, and in what units or vocabulary?", "kind": "definition", "answer_data": [ "identifiers", "types and classes", "values with units", "explicit unknowns" ] }, { "id": "access-rules-q02", "text": "Who or what asserted this about access to a derivative, by which method, and when was it true?", "kind": "provenance", "answer_data": [ "authority", "method", "evidence", "event time", "knowledge time" ] }, { "id": "access-rules-q03", "text": "What may an agent decide or do once access to a derivative is known, and what must it refuse?", "kind": "action", "answer_data": [ "permitted actions", "preconditions", "refusals", "escalation" ] } ] } ] } ] }, { "id": "work-and-manifestation", "name": "Work, version and copy", "description": "Which level of derivative a statement is about.", "rationale": "The work, the edition, the file and the copy in hand are four things; rights and content attach to different ones.", "layers": [ { "id": "levels", "name": "Levels of the thing", "description": "Work, expression, manifestation and item, in plain terms.", "findings": [ { "id": "level-rules", "name": "What belongs at each level", "description": "Which facts hold for the work and which only for one copy.", "questions": [ { "id": "level-rules-q01", "text": "For derivative, which facts belong to the work itself, which to a version, and which to a single copy?", "kind": "boundary" }, { "id": "level-rules-q02", "text": "What identifier exists at each level, and which one is being cited?", "kind": "definition" } ] } ] }, { "id": "versions", "name": "Versions, editions and variants", "description": "How versions differ and which is canonical to whom.", "findings": [ { "id": "version-record", "name": "Versions and canonicity", "description": "Differences that matter and who calls one authoritative.", "questions": [ { "id": "version-record-q01", "text": "Which versions or editions of derivative exist, and how do they differ substantively?", "kind": "definition" }, { "id": "version-record-q02", "text": "Who treats which version as authoritative, and for what purpose?", "kind": "provenance" } ] } ] } ] }, { "id": "authorship-and-rights", "name": "Authorship, rights and permitted use", "description": "Who made derivative and what may be done with it.", "rationale": "Rights are jurisdictional, time-limited and attached to a level, and an agent that ignores that will copy what it may not.", "layers": [ { "id": "authorship", "name": "Authorship and contribution", "description": "Who contributed what, and in what capacity.", "findings": [ { "id": "contribution-record", "name": "Contributors and roles", "description": "The people and bodies behind it, with their roles.", "questions": [ { "id": "contribution-record-q01", "text": "Who authored or contributed to derivative, in what roles, and how is that attested?", "kind": "provenance" }, { "id": "contribution-record-q02", "text": "Where authorship is disputed or anonymous, what is recorded instead?", "kind": "boundary" } ] } ] }, { "id": "rights", "name": "Rights and permissions", "description": "Which rights subsist, where, until when, and what they permit.", "findings": [ { "id": "rights-record", "name": "Rights, term and permitted acts", "description": "The regime in force and what it allows.", "questions": [ { "id": "rights-record-q01", "text": "What rights subsist in derivative, in which jurisdictions, and until when?", "kind": "definition" }, { "id": "rights-record-q02", "text": "Which acts are permitted without further permission, and which must an agent refuse?", "kind": "action" } ] } ] } ] }, { "id": "provenance-and-evidence", "name": "Provenance, evidence and time", "description": "Where every claim about a derivative came from and when it held.", "rationale": "A claim without a source and a time cannot be superseded, only overwritten, and an agent that overwrites loses the ability to explain itself.", "layers": [ { "id": "source-and-authority", "name": "Source and authority", "description": "Who said it, on what evidence, and how strongly.", "findings": [ { "id": "claim-provenance", "name": "Claim provenance and confidence", "description": "The authority behind each claim about a derivative and how confident it is.", "questions": [ { "id": "claim-provenance-q01", "text": "What identifies and describes a claim about a derivative, and in what units or vocabulary?", "kind": "definition", "answer_data": [ "identifiers", "types and classes", "values with units", "explicit unknowns" ] }, { "id": "claim-provenance-q02", "text": "Who or what asserted this about a claim about a derivative, by which method, and when was it true?", "kind": "provenance", "answer_data": [ "authority", "method", "evidence", "event time", "knowledge time" ] }, { "id": "claim-provenance-q03", "text": "What may an agent decide or do once a claim about a derivative is known, and what must it refuse?", "kind": "action", "answer_data": [ "permitted actions", "preconditions", "refusals", "escalation" ] } ] } ] }, { "id": "time-and-versions", "name": "Time, versions and supersession", "description": "When a claim was true, when it was learnt, and what replaced it.", "findings": [ { "id": "validity-and-supersession", "name": "Validity period and supersession", "description": "How an old claim about a derivative is retired without being erased.", "questions": [ { "id": "validity-and-supersession-q01", "text": "What identifies and describes the validity of a claim about a derivative, and in what units or vocabulary?", "kind": "definition", "answer_data": [ "identifiers", "types and classes", "values with units", "explicit unknowns" ] }, { "id": "validity-and-supersession-q02", "text": "Who or what asserted this about the validity of a claim about a derivative, by which method, and when was it true?", "kind": "provenance", "answer_data": [ "authority", "method", "evidence", "event time", "knowledge time" ] }, { "id": "validity-and-supersession-q03", "text": "What may an agent decide or do once the validity of a claim about a derivative is known, and what must it refuse?", "kind": "action", "answer_data": [ "permitted actions", "preconditions", "refusals", "escalation" ] } ] } ] } ] } ] }, "statistics": { "bundles": 6, "layers": 12, "findings": 14, "questions": 38 } } } }