Cypher uses the Pyth oracle network to track the underlying for each market. Accurate price feeds are integral to cypher’s futures market and margining system; they assure futures contracts expire to the underlying asset price and protect the integrity of under-collateralized trading accounts.
The oracles will be responsible for pulling data (both off-chain and on-chain), depending on the particular market and the lifecycle of said market. While a market is open for trading, an oracle will be utilized to ensure there is sufficient capital in the system for collateral.
At time of market expiry, an oracle will be utilized to ensure a market is financially settling to the appropriate price of the particular underlying that is represented by the given futures market.
Cypher also has the capability to launch markets without a price feed, which is important in the case of pre-IDO assets. Because margin health is calculated based off the price of the contract, However, while the market may not launch with a price feed, Cypher has the ability to expire the to an oracle price.