All Chainsight perpetual markets rely on external price feeds to calculate funding rates and mark prices. Variance perpetuals specifically require accurate historical price data to calculate 30-day realized volatility.
Potential Oracle Failures
Data source outages: Temporary unavailability of price feeds
Calculation errors: Incorrect volatility or index computations
Manipulation attempts: Bad actors attempting to influence oracle prices
HIP-3 Oracle Requirements
As specified in Hyperliquid's documentation, builders must:
Maintain reliable oracle infrastructure
Configure appropriate price bands and sanity checks
Face slashing penalties for oracle manipulation
Trader Protections
Hyperliquid's core infrastructure includes:
Position liquidations based on oracle mark prices
Funding rate calculations using builder-provided feeds
Emergency pause mechanisms for extreme oracle deviations
