How Does ‘Data Latency’ Impact the Fairness of Options Settlement via Smart Contracts?

Data latency is the delay between a real-world price change and the smart contract receiving that updated price from the Oracle. High latency can lead to 'front-running' or 'arbitrage' opportunities where a trader exploits the stale price for profit.

This results in unfair settlement for one of the contract parties. Low latency is crucial to ensure the contract executes based on the most current market conditions.