Oracle Risks

Lending platforms face inherent oracle risks stemming from their dependency on obtaining accurate and timely pricing data. Any discrepancies in pricing or delays in updates could pose substantial risks. Should an Oracle system deliver erroneous data, the strategy may face a potential for forced liquidation, resulting in the loss equaling (1 - LTV) + LTV x De-peg %.

Refer to the De-pegging Contingency Plan section for more information.

PreviousLiquidity RisksNextOverutilization Risks

Last updated