What Are the Security Risks Associated with Relying on a Single Oracle for Options Data?

Relying on a single oracle creates a single point of failure. If that oracle is compromised, manipulated, or suffers downtime, the smart contract will execute based on faulty or stale data, leading to incorrect and potentially malicious settlements.

This is known as the "oracle problem." A malicious actor could exploit this to trigger a favorable but undeserved payout.

What Are the Risks Associated with a Single, Centralized Oracle Provider?
How Does an Oracle Service Provider Earn Revenue?
How Can Oracle Failure Lead to Cascading Liquidations in a Derivatives Exchange?
What Are the Risks Associated with a “Single Point of Failure” in a Decentralized Oracle System?
What Is a “Sybil Attack” in the Context of Decentralized Oracles?
How Does the “Oracle Problem” Affect the Reliability of Synthetic Assets?
What Are the Security Risks Associated with a Faulty Oracle?
What Are the Risks of a Centralized Oracle in a Decentralized Derivatives Platform?