Skip to main content

In a Crypto Options Contract, What Specific Data Would an Oracle Typically Provide?

An oracle primarily provides the underlying asset's real-time or near real-time price feed. For a Bitcoin call option, the oracle feeds the BTC/USD price to the contract.

This price is crucial for determining the option's intrinsic value, calculating margin requirements, and executing settlement at expiry. It ensures the contract settles based on verifiable, current market conditions.

Can a Pruned Node Serve Historical Block Data to a New Node Joining the Network?
What Is the Relationship between the Option’s Strike Price and the Current Market Price?
Are There Any Cryptocurrencies That Have Successfully Transitioned to a New, More Secure Hashing Algorithm, and What Was the Impact on Their Valuation?
What Is a Governance Token and How Does It Differ from a Utility Token?