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What Are the Risks of Relying on a Single Data Feed for an Options Smart Contract?

Relying on a single data feed for an options smart contract creates a critical single point of failure. This exposes the contract to manipulation, such as a 'flash loan' attack that temporarily spikes the price on a single exchange, or simple downtime/inaccuracy of the source.

If the single feed is compromised, the options contract will settle based on incorrect data, leading to unfair losses for one or both parties.

Why Is Using a Single Exchange’s Price for Settlement Considered Risky?
Can a Sybil Attack Compromise the Price of an Options Underlying Asset?
What Happens If a Market Is Illiquid at the Time of Settlement Price Calculation?
What Are the Risks Associated with Relying on a Single Oracle?