Who Is Legally Liable If a Smart Contract Autonomously Executes a Transaction Based on Faulty Data from an Oracle?

Determining liability is a complex and largely untested legal area. Liability could potentially fall on several parties.

The oracle provider could be held liable if their service-level agreement guaranteed data accuracy. The developers of the smart contract could be liable if they were negligent in its design or failed to account for potential data errors.

In some cases, the users who opted into the smart contract might be deemed to have accepted the risks, under the principle of "caveat emptor" (buyer beware). The legal outcome would likely depend on the specific facts, jurisdiction, and any contractual agreements between the parties.