Oracle, Mark Price and Settlement Policy
Updated: 9 May 2026
1. Status of this policy
1.1 This Oracle, Mark Price and Settlement Policy forms part of the Trading Rules incorporated into the Terms of Use.
1.2 This policy applies to oracle prices, mark prices, index prices, reference prices, theoretical values, volatility inputs, settlement prices, margin values, liquidation values, and related pricing inputs used in connection with the Application or Derive Protocol.
2. Pricing inputs
2.1 You acknowledge that margin, liquidation, settlement, pricing, profit and loss, collateral requirements, market integrity reviews, Mistrade reviews, and Erroneous Transaction reviews may depend on oracle prices, mark prices, index prices, theoretical values, reference prices, implied volatility, settlement prices, or other pricing inputs.
2.2 No pricing source is guaranteed to be accurate, continuous, available, manipulation-resistant, or appropriate in all market conditions.
2.3 Pricing inputs may be delayed, stale, unavailable, inaccurate, incomplete, manipulated, disputed, subject to technical failure, or inappropriate during abnormal market conditions.
2.4 You are responsible for monitoring pricing inputs relevant to your positions, margin, and settlement obligations. We are not responsible for losses arising from your failure to monitor pricing inputs, adjust positions, or manage risk in response to pricing input changes or disruptions.
3. Fallback and emergency pricing
3.1 We may, through available Application functionality and where applicable through protocol governance, smart contract mechanics, oracle parameters, risk parameters, or governance-approved processes, determine, update, suspend, replace, disregard, or apply fallback methodologies to any oracle, mark price, index, reference price, volatility input, theoretical value, or settlement price displayed through or used by the Application where we reasonably consider this necessary due to market disruption, data unavailability, data error, manipulation, abnormal market conditions, technical issues, oracle issues, protocol issues, market integrity concerns, settlement concerns, or liquidation concerns. Where any fallback methodology requires action at the protocol level rather than the Application level, we may seek to facilitate such action through applicable governance or operational processes but do not guarantee that protocol-level fallback action will be achievable in every circumstance or within any particular timeframe.
3.2 A fallback methodology may consider one or more of the following:
a. oracle data;
b. index data;
c. comparable venues;
d. external reference prices;
e. theoretical values;
f. implied volatility;
g. put-call parity;
h. orderbook state;
i. RFQ history;
j. recent trades;
k. liquidity conditions;
l. settlement impact;
m. liquidation impact;
n. expiry proximity;
o. data provider status; and
p. any other information we reasonably consider relevant.
4. Settlement
4.1 Settlement may occur according to smart contract mechanics, protocol rules, governance decisions, risk framework, oracle values, settlement prices, Trading Rules, or other applicable process.
4.2 Settlement may be delayed, adjusted, suspended, rerun, disregarded, or otherwise modified through available Application functionality and where applicable through protocol governance, smart contract mechanics, risk parameters, or governance-approved processes, based on available market data, oracle data, or other objective evidence relevant to the settlement determination where we reasonably consider this necessary or appropriate because of a Mistrade, Erroneous Transaction, oracle issue, data issue, market integrity issue, security issue, technical issue, operational issue, liquidation issue, insolvency, insurance fund issue, or abnormal market condition.
