What Is the Relationship between the Threshold ‘T’ and the Security Level of the Oracle?
The security level is directly proportional to the threshold $T$. A higher $T$ (closer to $N$, the total number of nodes) requires an attacker to compromise more nodes to generate a false signature, making the attack more expensive and difficult.
A lower $T$ is more resilient to node failure (if a few nodes go offline, the oracle can still report) but is less secure against collusion.