An Oracle giving the price of a currency (like ETH) or commodity in another currency (like $ or BTC). Submitters submit price ranges and Kleros removes price ranges not containing the real value. The final value is given by taking the mean of the intersection of all remaining intervals. This can be used to update prices or to make financial contracts.
Alice creates a derivative following the price of Tesla stock. The price oracle is used for settlement.
Bob believes that the price of ETH is gonna decrease and wants to short it. A decentralized trading platform offers short options using CFDs (contract for difference). Carl, who runs a liquidation bot, sees Bob position to be below the required collateralization and liquidates it. Note that since the oracle is not real time, the funds are locked waiting for the oracle to return a result (but the oracle returns the price at the time the position was closed). If Carl had liquidated a position which shouldn’t be, he gets penalized and Bob gets his initial funds back.
An Oracle giving the price of a currency (like ETH) or commodity in another currency (like $ or BTC). Submitters submit price ranges and Kleros removes price ranges not containing the real value. The final value is given by taking the mean of the intersection of all remaining intervals. This can be used to update prices or to make financial contracts.