How Often Should an Oracle Update for a High-Frequency Trading Derivative?

For true high-frequency trading, a decentralized oracle cannot provide the sub-second updates required due to blockchain latency and gas costs. However, for decentralized derivatives, the oracle should update as frequently as possible, typically every few seconds or when a small deviation threshold (e.g.

0.1%) is met. This ensures the price is sufficiently fresh for liquidations and fair trading, balancing speed with network cost.