Oracle Price Feed

Limora uses decentralized oracle price feeds to determine accurate market prices for opening, closing, and liquidating positions. This page explains how the oracle system works.

Overview

Unlike order-book based exchanges where prices are determined by matching bids and asks, Limora uses oracle-based pricing. This approach offers several advantages:

No Slippage

Trades execute at the oracle price, regardless of position size.

Manipulation Resistant

Prices are aggregated from multiple sources, making manipulation difficult.

Consistent Execution

All trades in a block get the same price, ensuring fairness.

Transparent

Oracle prices are on-chain and independently verifiable.

Price Sources

Limora aggregates prices from multiple reputable sources:

Chainlink: Industry-leading decentralized oracle network
Pyth Network: High-frequency price feeds from major exchanges
Band Protocol: Cross-chain oracle solution

The protocol uses a median price from these sources to mitigate the impact of any single source being manipulated or experiencing issues.

Price Feed Architecture

Supported Price Feeds

Asset	Symbol	Update Frequency	Deviation Threshold
Bitcoin	BTC/USD	1 second	0.1%
Ethereum	ETH/USD	1 second	0.1%
Solana	SOL/USD	1 second	0.25%
Arbitrum	ARB/USD	10 seconds	0.5%
Optimism	OP/USD	10 seconds	0.5%

Price feeds are continuously updated. The table above shows typical parameters which may be adjusted based on market conditions.

Price Calculation

Entry Price

When opening a position, the entry price is determined by:

Fetching the latest oracle price at transaction execution
Applying any applicable spread (typically 0%)
Recording the price in the position data

Mark Price

The mark price used for P&L calculation and liquidations:

Mark Price = Oracle Price

For most trading pairs, the mark price equals the oracle price directly. For some pairs, a time-weighted average price (TWAP) may be used to smooth volatility.

Settlement Price

When closing a position, the settlement price is:

The oracle price at the time of the close transaction
Used to calculate final P&L
Determines fund distribution between trader and matcher

Staleness Protection

To protect against stale or outdated prices, the protocol implements staleness checks:

require(
    block.timestamp - priceTimestamp < MAX_PRICE_AGE,
    "Price feed is stale"
);

Parameter	Value	Description
MAX_PRICE_AGE	60 seconds	Maximum age of price data
HEARTBEAT	10 seconds	Expected update frequency

If a price feed becomes stale:

New positions cannot be opened for that pair
Existing positions continue using the last valid price
Alerts are triggered for protocol operators

Deviation Protection

The protocol monitors for unusual price deviations:

require(
    abs(newPrice - lastPrice) / lastPrice < MAX_DEVIATION,
    "Price deviation too large"
);

This prevents extreme price swings from triggering mass liquidations due to oracle errors.

Price Updates and Gas

Oracle price updates are performed by dedicated keeper networks that:

Monitor off-chain price sources
Submit on-chain updates when thresholds are met
Pay gas costs for update transactions

Users do not need to pay for oracle updates; these costs are covered by the protocol.

Liquidation Pricing

Liquidations use a specific pricing mechanism to ensure fairness:

Trigger Check: Position checked against current oracle price
Grace Period: Brief window before execution (configurable)
Execution Price: Oracle price at liquidation transaction

This prevents front-running of liquidations and ensures traders have fair opportunity to add margin.

Oracle Governance

Oracle configuration is managed through protocol governance:

Adding new price feeds requires governance approval
Changing deviation thresholds requires governance approval
Emergency pauses can be triggered by the security council

Monitoring and Transparency

On-Chain Data

All oracle prices are recorded on-chain and can be verified:

// Query current price
function getPrice(address asset) external view returns (
    uint256 price,
    uint256 timestamp,
    uint8 decimals
);

// Query historical price
function getHistoricalPrice(address asset, uint256 timestamp)
    external view returns (uint256 price);

Price Dashboard

Monitor current and historical prices at:

On-chain: Contract read functions
API: /api/prices endpoint
UI: Price charts on the trading interface

Limitations

Known Limitations

Update Latency: Oracle prices may lag spot prices by 1-10 seconds
Weekend Gaps: Some assets may have reduced update frequency during low-volume periods
Network Congestion: Base network congestion may delay price updates

Best Practices

Use stop-loss orders to limit downside risk
Avoid extremely high leverage during volatile periods
Monitor positions actively during major market events

Technical Integration

For developers integrating with Limora’s oracle system:

import { LimoraOracle } from '@limora/sdk'

const oracle = new LimoraOracle({
  provider: ethersProvider,
  network: 'base-mainnet',
})

// Get current price
const btcPrice = await oracle.getPrice('BTC')
console.log(`BTC Price: $${btcPrice.toFixed(2)}`)

// Subscribe to price updates
oracle.subscribe('ETH', (price, timestamp) => {
  console.log(`ETH: $${price} at ${timestamp}`)
})

Protocol Overview

Learn more about the protocol architecture.

API Reference

Access price data via API.

Getting Started

Protocol

Trading

Trading Game

Matching

Staking

Features

Resources

Legal

Overview

No Slippage

Manipulation Resistant

Consistent Execution

Transparent

Price Sources

Price Feed Architecture

Supported Price Feeds

Price Calculation

Entry Price

Mark Price

Settlement Price

Staleness Protection

Deviation Protection

Price Updates and Gas

Liquidation Pricing

Oracle Governance

Monitoring and Transparency

On-Chain Data

Price Dashboard

Limitations

Known Limitations

Best Practices

Technical Integration

Protocol Overview

API Reference

​Overview

No Slippage

Manipulation Resistant

Consistent Execution

Transparent

​Price Sources

​Price Feed Architecture

​Supported Price Feeds

​Price Calculation

​Entry Price

​Mark Price

​Settlement Price

​Staleness Protection

​Deviation Protection

​Price Updates and Gas

​Liquidation Pricing

​Oracle Governance

​Monitoring and Transparency

​On-Chain Data

​Price Dashboard

​Limitations

​Known Limitations

​Best Practices

​Technical Integration

Protocol Overview

API Reference

Overview

Price Sources

Price Feed Architecture

Supported Price Feeds

Price Calculation

Entry Price

Mark Price

Settlement Price

Staleness Protection

Deviation Protection

Price Updates and Gas

Liquidation Pricing

Oracle Governance

Monitoring and Transparency

On-Chain Data

Price Dashboard

Limitations

Known Limitations

Best Practices

Technical Integration