A method and a device provide protection for a multi-terminal HVDC grid against faults. The method includes measuring a DC displacement voltage having a polarity and a value, determining if a short circuit fault exists by comparing the DC displacement voltage with a threshold displacement voltage and identifying a fault type based on the polarity and the value of the DC displacement voltage. The disclosed device contains a converter having a positive pole and a negative pole, a DC-switch substation, a DC line connecting the converter and the DC-switch substation and a transient fault detector. The transient fault detector contains a positive voltage sensor sensing a positive transient voltage of the positive pole and a negative voltage sensor sensing a negative transient voltage of the negative pole and a control unit which is adapted to derive a DC displacement voltage from the positive and the negative transient voltages.