The article introduces a new way to price financial contracts that involve credit risk. It focuses on credit default swap (CDS) contracts, which are affected by risks from the buyer, seller, and reference entity. The study reveals that default dependency greatly influences the value of CDS. It also shows that even if a CDS is fully collateralized, it still carries some level of counterparty risk. In simple terms, having full collateral doesn't make a CDS completely risk-free.