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How Are Oracles Used to Settle Perpetual Futures Contracts On-Chain?

Oracles provide the index price for calculating funding rates and automatically triggering liquidation of underwater positions.
Greeks.Live09.11.25

How Are Oracles Used to Settle Perpetual Futures Contracts On-Chain?

Oracles are essential for settling perpetual futures contracts by providing the reliable, real-time index price of the underlying asset. They feed this price to the smart contract, which uses it to calculate the 'funding rate' and determine when a trader's position falls below the maintenance margin.

This automated price feed triggers liquidation, ensuring the solvency of the derivatives platform without the need for a centralized exchange to intervene.

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How Are Oracles Used to Settle Perpetual Futures Contracts?

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