Oracle Risk

Solera's products rely heavily on price feeds from partnered Oracles, inaccuracies in price feeds may result in unexpected liquidations for borrowers or losses for lenders. In the event of an oracle failure or exploit determined by pre-established conditions, Solera will switch to a backup oracle system or an off chain price.

Note that given the variety of oracles used and assets listed, it's up to users depositing in each market to note which oracle is being used and properly assess their own risk tolerance. For example, some oracles depend on pool prices which are subject to quick change in volatile market conditions, while others are custom based on asset exchange rates, and others rely on third parties like Pyth and Chainlink.