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How Does the Use of a Fallback Oracle Mitigate Risk?

A fallback oracle is a secondary data source used when the primary oracle fails or provides suspicious data, ensuring continuity and safety.
Greeks.Live20.11.25

How Does the Use of a Fallback Oracle Mitigate Risk?

A fallback oracle is a secondary, independent data source that a smart contract is programmed to switch to if the primary oracle fails to provide an update or provides a data point that is significantly outside a pre-defined range of reasonableness. This redundancy ensures that the smart contract can continue to operate with verified data, preventing a liveness failure or a single, drastically incorrect data point from causing an unfair liquidation or settlement.

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