Taurus is an off-chain/on-chain, secure and scalable protocol powering smart derivatives. The protocol intends to standardize derivative trading and provide a distributed blockchain backend for persisting and executing contracts. Contracts are generated and signed securely offline, and may be transmitted over any network. The protocol leverages MultiSig contract technology and Elliptic Curve Cryptography in the form of ECDSA to generate and verify digital signatures. The protocol business logic is maintained in a system of smart contracts on the Ethereum blockchain. The protocol operates in two modes: peer-to-peer and moderated, allowing exchanges and/or independent dApp developers to utilize its functionality. Finally, the protocol is an open source project intended to be governed by a proof-of-stake Decentralized Autonomous Organization or DAO. Decentralized governance facilitates continuous integration and development with consensus of the governing the community.