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DwnVoteHoneyPot | 1 month ago

Seriously? What hedge contract you going to use for: 1) Wars, 2) a revocation of trucker drivers’ licenses (already happening in Cali), 3)deportations, 4)tariffs, 5) the collapse of USMCA

discuss

order

JumpCrisscross|1 month ago

War-risk insurance is a thing [1]. You could probably buy a business-interruption policy with a line item for revocations. Adding a tariff contingency to customer contracts and/or engaging with vendors on a fixed-price tariff-notwithstanding basis transfers tariff risk.

Deportatios and the collapse of a free-trade zone are not mitigatable. De-leveraging from products that don't have a strong domestic alternative would be the only options there.

All costs. None easy. But all doable. (Not saying it's good business.)

[1] https://en.wikipedia.org/wiki/War_risk_insurance

BobaFloutist|1 month ago

Right, and then you lose the contract to someone who decided, rather than pricing in the risks, to have their hedge be "Idk guess I'll go bankrupt lmao" and bid as usual.