CVEX: Navigating Price and Risk with Precision

March 27, 2024

The accuracy and integrity of market data are paramount. At CVEX, we understand the crucial role of reliable information in fostering a stable and efficient trading environment. That’s why we’ve integrated sophisticated Price and Risk Oracles into our platform, ensuring that our traders operate with the most accurate and up-to-date information.

Price Oracles

Price Oracles are the lifeline of the CVEX platform, providing real-time prices of underlying assets essential for Mark Price calculations and the settlement of contracts. These oracles ensure that traders’ profit and loss (P&L), margin, and equity are based on accurate and current market data. Here’s how CVEX ensures the reliability of these critical data points:

  1. Regular Updates. Price data updates range from 1 to 30 minutes, maintaining the integrity of Mark Prices and reflecting the true value of assets in real-time.
  2. Diverse Sources. Platform owners select reputable price sources for each contract, linking them to their respective underlying assets.
  3. Off-chain Oracles. Trusted entities that provide flexibility and a broad asset range. They require a degree of trust and involve gas fees for updates.
  4. Decentralised Data Feeds. Integrating with renowned decentralised oracles like Chainlink and DIA Data ensures high data integrity, though with potential limitations in asset availability and update frequency.

Risk Oracles

Risk Oracles are equally vital, offering insights into the volatility of underlying assets and their return correlations. This information is crucial for:

  • Accurate Margin Calculations. Frequent updates to risk parameters (every 1–48 hours) ensure traders have precise collateral requirements and liquidation thresholds.
  • Balancing Leverage and Safety. Platform owners meticulously manage the balance between default risk and trader leverage, ensuring the platform operates within safe risk thresholds.

Initially, Risk Oracles will function as trusted off-chain entities, managed predominantly by Platform Owners. As the cryptocurrency ecosystem matures, CVEX is committed to exploring decentralised solutions for these indispensable parameters.

Precision at the Core of CVEX

At CVEX, we believe in providing our traders with a platform that’s not only advanced but also steadfast and reliable. The integration of Price and Risk Oracles into our ecosystem is a testament to our commitment to precision, transparency, and user safety. As we navigate the future of decentralised trading, we continue to innovate and adapt, ensuring that CVEX remains at the forefront of the industry.

Stay updated with the latest advancements, and join us in shaping the future of decentralised trading at CVEX.