Use Cases

OBCDs are designed for risks that are "hard to insure" in traditional markets but "easy to predict" in information markets.

1. Supply Chain Logistics

• Scenario: A shipping company fears a closure of a major trade route due to geopolitical tension.

• OBCD Product: "Canal Transit Disruption Policy."

• Underlying Market: "Will the Suez Canal be blocked in 2025?"

• Benefit: The company receives instant liquidity to reroute ships if the blockage occurs, offsetting increased fuel costs.

2. Climate & Agriculture

• Scenario: A coffee chain wants to hedge against a price spike caused by frost in Brazil.

• OBCD Product: "Yield Protection Derivative."

• Underlying Market: "Will temperature in Minas Gerais drop below 0°C?" (Weather-based markets on Kalshi/Arbol integrations).

• Benefit: Parametric payout allows the company to absorb higher bean prices without raising consumer prices.

3. Geopolitical & Policy Risk

• Scenario: A renewable energy firm is concerned that a new election result will repeal green energy subsidies.

• OBCD Product: "Policy Continuity Swap."

• Underlying Market: "Will Candidate X win the Presidential Election?"

• Benefit: If the candidate hostile to subsidies wins, the payout from the OBCD offsets the loss of future government grants.