In forward and futures contracts, the risk of non-fulfillment of contract terms is most likely borne by:

In forward and futures contracts, the risk of non-fulfillment of contract terms is indeed shared by both parties to the contract. This is because both the long position (the buyer) and the short position (the seller) are obligated to fulfill their respective commitments by the contract's expiration. The long position risks the possibility that the seller will not deliver the underlying asset, while the short position faces the risk that the buyer may not pay for it.

In the context of futures contracts, this risk is somewhat mitigated by the clearinghouse, which acts as an intermediary and guarantees the performance of the contract. However, in forwards, which are private agreements, the risk of default is more pronounced and still remains applicable to both sides. This ensures that both parties need to assess the creditworthiness of the other party before entering into the contract to manage their risk appropriately.

Consequently, recognizing that both parties have a vested interest in fulfilling the contract is essential for understanding the inherent risks associated with these financial instruments.