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

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.

What Is ‘Data Latency’ and Why Is It a Risk for High-Frequency Derivatives Trading?

What Is ‘Latency Arbitrage’ and How Does ‘Last Look’ Attempt to Mitigate It?

What Is “Data Latency” and Why Is It a Major Risk for DeFi Derivatives Oracles?

How Does an Oracle’s Latency or Inaccuracy Contribute to Liquidation Cascades?

How Is a Tokenized Real-World Asset (RWA) Valued to Ensure Its On-Chain Liquidity?

What Is “Oracle Latency” and Why Is It a Risk for Derivatives Trading?

Can Smart Contracts Interact with Real-World Data and Events?

What Is the Risk of Using a ‘Time-Weighted Average Price’ (TWAP) Feed?

Glossar

Oracle Latency

Propagation ⎊ Oracle latency, within cryptocurrency and derivatives, represents the time delay inherent in transmitting data from a real-world source to a blockchain or decentralized application.