How Is Determinism Important for Calculating Option Payoff in a Smart Contract?

Determinism is absolutely essential for calculating an option's payoff in a smart contract. The contract must be able to execute the payoff logic based on an agreed-upon, verifiable, and non-disputable data point (e.g. the price of the underlying asset at expiration).

If the calculation logic or the input data were non-deterministic, different nodes would calculate different payoffs, leading to a consensus failure and an unresolvable dispute over the contract's execution.