Oracle

The oracle is typically an independent third-party provider that is trusted by the exchange and traders to provide accurate and reliable price data.

The oracle data is used to calculate the index price of the underlying asset or commodity, which is then used to determine the settlement price of the contract. This settlement process occurs periodically, such as every minute or every few minutes, depending on the exchange's rules.

The use of an oracle helps to ensure that the settlement price of the perpetual futures contract is transparent, fair, and free from manipulation. The oracle data is usually sourced from a variety of exchanges and other market data sources to ensure that the index price reflects the true market value of the underlying asset or commodity.

Oracle provides the market with an accurate and reliable sourance of price data, which is necessary for the proper functioning of the perpetual futures market.