> For the complete documentation index, see [llms.txt](https://docs.squads.so/squads-v3-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.squads.so/squads-v3-docs/development/pdas/derivation.md).

# Derivation

Example hierarchy of PDAs for two Transactions with two instructions each

![](https://1205508290-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FGOJv2Locm6v5eywwSeaG%2Fuploads%2FERlMA4WRWUgAUfc7HzkV%2FPDA%20Relationship.png?alt=media\&token=7cebb7cd-24de-409d-9c15-ff03fe344a45)