  This paper proposes an auction type resolution for smart derivatives. It has
been discussed to migrate derivatives contracts to smart contracts (smart
derivatives). Automation is often discussed in this context. It is also
important to prepare to avoid disputes from practical perspectives. There are
controversial issues to terminate the relationship at defaults. In OTC
derivative markets, master agreements define a basic policy for the liquidation
process but there happened some disputes over these processes. We propose to
define an auction type resolution in smart derivatives, which each participant
would find beneficial.
