How Does the Oracle Problem Specifically Impact Decentralized Options Trading Platforms?

Decentralized options platforms rely heavily on accurate, timely price feeds for collateral valuation, margin calls, and final settlement. The oracle problem introduces risk that the strike price or underlying asset price used for execution is incorrect or manipulated.

If the oracle fails or provides bad data, a contract could settle unfairly, undermining user trust and the platform's stability. This is critical for maintaining solvency and fairness.