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Risk oracles provide dynamic, real-time parameters for managing risk at scale. Pioneered by the team at Chaos Labs to manage risk in the Web3 space, these oracles automate market condition adjustments without manual intervention.

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What is a Risk Oracle?

Chaos risk oracles are smart contracts and services that deliver dynamic, real-time risk parameters for DeFi protocols. They enable protocols to automatically adjust to changing market conditions, helping to manage risk and maintain stability without governance delays or manual intervention. All parameter changes are transparently verified on-chain, and the system offers protocol-specific customization options to align with your unique risk profile.
For live data and examples of proof oracle feeds, visit the Chaos Risk Oracle Dashboard.

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How Risk Updates are Transmitted and Formatted

Chaos risk oracles follow a continuous, event-driven process to ensure protocols adapt in real time to market conditions. The core flow involves:
  • The Chaos Labs risk engine continuously simulates protocol behavior and identifies when risk parameters should be updated.
  • Updates are cryptographically signed and can be delivered on-chain (via smart contract) or off-chain (via API), depending on your integration needs.
  • Each update includes the parameter, value, timestamp, and other metadata, ensuring transparency and auditability.

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Integration

Chaos Labs offers flexible integration options for risk oracles:
  • On-chain contract integration: Receive risk parameter updates directly to your protocol via smart contract events and function calls.
  • API integration: Access risk parameter recommendations via a secure API for off-chain consumption or hybrid workflows.
Parameters, update types, and data formatting are tailored to your protocol’s needs and are agreed upon in advance with the Chaos Labs team. This ensures seamless integration and that the risk oracle delivers actionable, relevant data for your use case. For detailed integration guides, see the risk oracle integration documentation. To plan your integration or discuss custom requirements, reach out to the Chaos Labs team. We work closely with partners to ensure the risk oracle fits your protocol’s unique risk management needs.

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Learn More

For those interested in the technical details or contract implementation, see the Chaos labs risk oracle GitHub repository.