Skip to main content
Learn

How Do Options Platforms Handle Oracle Downtime or Latency?

By implementing "circuit breakers" to pause activity, using backup oracles, or employing a Time-Weighted Average Price (TWAP) for settlement.
Greeks.Live05.11.25

How Do Options Platforms Handle Oracle Downtime or Latency?

Platforms implement contingency plans to handle oracle failures. This often includes a circuit breaker mechanism that pauses trading or settlement if the oracle fails to update within a set timeframe.

Some platforms also use a backup oracle or a time-weighted average price (TWAP) mechanism to smooth out sudden latency spikes. This protects users from settlement at an unfair price during an outage.

How Is a ‘Time-Weighted Average Price’ (TWAP) Used in Settlement?
What Is a Time-Weighted Average Price (TWAP) Oracle and Why Is It Used?
What Mechanisms Can Be Used to Mitigate the Risk of Prolonged Price Manipulation in a TWAP Oracle?
How Can a Smart Contract Be Designed to Handle Unforeseen Market Events, like a Flash Crash, in Derivatives Trading?

About

Contact

Editorial Policy

Terms of Service

Privacy Policy

Cookie Policy

© 2025 Greeks.Live

All Rights Reserved

Greeks.Live RFQ

Build by Noo on Engine

Source: The content on this website is produced by Greeks.live's proprietary analysis systems, which utilize advanced Large Language Models (LLMs). This information might not be subject to a full human review before publication and may contain errors.
Responsibility: You should not make any financial decisions based solely on the content presented here. We strongly urge you to conduct your own rigorous due diligence and to consult a qualified, independent financial advisor.
Purpose: All information is intended for informational purposes only. It should not be construed as financial, investment, trading, or any other form of professional advice. News and data are not trading signals.
Risk: The cryptocurrency, derivatives, and options markets are highly volatile and carry significant risk. By using this site, you acknowledge these risks and agree that Greeks.live and its affiliates are not responsible for any financial losses you may incur.