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All termsRiskWorth knowing

Oracle Risk

Oracle risk is the risk that external information supplied to a blockchain application is incorrect, delayed, manipulated or unavailable. Smart contracts may depend on oracles for information they cannot obtain directly from the blockchain.

Why it matters to you

An RWA system might rely on external data such as asset prices, interest rates or other financial information. Even perfectly functioning smart contract code can produce an incorrect result if the external information it receives is wrong.

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