A new model was created to assess the risk of trading credit default swaps. Unlike previous models, this one considers gradual drops in a company's value before defaulting, which is common in financial institutions. By analyzing data from JP Morgan and Citigroup, it was found that the risk of trading these swaps is significant, ranging from 5% to 30% of the contract's value, depending on certain factors. This shows that the risk of trading credit derivatives should not be ignored and needs to be managed carefully.