The article introduces a new model for pricing credit default swaps, focusing on analyzing counterparty risk and evaluating adjustments for credit and debt values. The model uses diffusion processes and a correlation structure to understand the risks involved in trading financial products. The goal is to address the importance of accounting for counterparty risk in valuing over-the-counter derivatives, especially after the financial crisis. The findings suggest that even seemingly simple products can lead to significant losses if not managed properly, highlighting the need for a comprehensive approach to pricing and risk assessment in credit markets.