Derivative over own equity

Hi sir, I find it difficult to understand what is derivative over own equity. I found this definition from IFRS and I couldn’t understand what it is trying to say. Can you help me out sir?

‘Derivative financial instruments contain contractual rights and obligations to exchange underlying financial assets, financial liabilities or equity instruments with another party. Consequently, derivative financial instruments can also be described as exchange contracts that have two ‘legs’. For example, in a typical warrant, at the option of the holder, the entity (the issuer) is obliged to deliver its own ordinary shares in exchange for cash. The obligation to deliver shares is one leg (equity leg) and the right to receive cash is the other leg (asset leg). If at least one leg of a derivative involves the delivery or extinguishment of an entity’s own equity instruments, or the underlying of a derivative is an entity’s own equity, then the derivative is referred to as a derivative on own equity in the DP.’