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How Does Oracle Latency Affect the Execution of an Options Trade?

Oracle latency is the delay between a real-world price change and when that updated price is available to the smart contract. High latency can cause a significant lag in the execution of time-sensitive events like option exercise or liquidation.

This lag can lead to "stale prices," which can be exploited by traders or result in unfair liquidations.

How Can a Faulty Oracle Price Feed Lead to an Option Contract Being Exercised Unfairly?
How Does ‘Data Latency’ Impact the Fairness of Options Settlement via Smart Contracts?
How Can a Malicious Oracle Attack a Derivatives Platform?
Can Smart Contracts Interact with Real-World Data and Events?