published by the international swaps and derivatives association isda an isda master agreement is a standardized contract for over the counter otc derivative transactions 1 it s the lingua franca of the derivatives world used extensively by financial institutions corporations and other market participants 
the agreement provides prearranged terms conditions and forms of documentation including payment arrangements and schedule what happens if there s a default what counts as termination events and credit dealings the isda master agreement is standardized but has customized schedules and sometimes a credit support annex that can be adjusted by the parties 