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.