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What Is the Role of an Oracle in Determining the Value of an f-NFT?

An oracle is essential for providing reliable, real-time, off-chain data (like market price or appraisal value) to the on-chain smart contract. For fractionalized NFTs, the oracle feeds the market-clearing price of the underlying NFT or the current trading price of the fractions.

This data is critical for calculating collateralization ratios, facilitating accurate lending, and executing liquidation mechanisms. A secure, decentralized oracle is vital for f-NFT financial products.

How Do Oracles Feed Real-World Price Data into a Derivative Smart Contract?
How Does a Decentralized Oracle Network Prevent Data Manipulation?
How Does an Oracle Feed External Data into an Immutable Smart Contract?
What Role Do Oracles Play in Executing Financial Derivatives Managed by Smart Contracts?