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Email Credit risk associated with derivative transactions can be managed through a variety of methods such as effective payment and close-out netting arrangements; the use of central clearing counterparties; and effective collateral arrangements. In the context of collateral arrangements, dealers often require end users to provide collateral in an amount which exceeds the amount of the dealer’s credit exposure. This is commonly achieved by requiring end users to deliver independent amounts (“IA”). The requirement to post IA presents end users with additional risk – the risk of loss of IA in the event of the dealer’s insolvency. https://www.cadwalader.com/resources/clients-friends-memos/posting-independent-amounts-under-derivative-transactions-industry-recommendations-for-end-user-protection