> ## Documentation Index
> Fetch the complete documentation index at: https://docs.scape.exchange/llms.txt
> Use this file to discover all available pages before exploring further.

# Oracle Price

> How Scape sources and uses oracle prices.

The oracle serves two functions:

1. The reference price for funding.
2. A direct input to the mark price.

Scape extends a commodity oracle to operate 24/7, beyond the trading sessions of the
underlying regional market. When the underlying market is open, the oracle follows the
external assessment print. When it is closed, a bounded discovery mechanism takes over. The
regime in force is identified on every update, so an externally derived value always remains
distinguishable from a Scape-calculated off-hours value.

## Reference-Price Regimes

| Regime             | Trigger                                                            | Oracle treatment                                             |
| ------------------ | ------------------------------------------------------------------ | ------------------------------------------------------------ |
| Active passthrough | Assessment window open and the external value is fresh (age ≤ 5 s) | Oracle derived directly from the latest valid external print |
| Stale hold         | Window open, but the external value is stale                       | Previous oracle held for up to a 60-second stale budget      |
| Bounded discovery  | Window closed, or staleness exceeds 60 s                           | Scape calculates a separately identified off-hours reference |
| Holiday hold       | Public holiday in the underlying market                            | Oracle held flat at the last active-session value            |

## External Pricing

The oracle is derived from composite spot assessments published by Scape's reporter network.
[SEDA Protocol](https://seda.xyz) validates and pushes the price to Hyperliquid every \~3
seconds. No FX conversion is applied — the oracle is quoted in the underlying market's local
currency end to end.

While the assessment is publishing and fresh, the externally derived local-currency price is
transmitted as the oracle price. A fresh external value is never replaced with local
discovery merely because it is unchanged or because the local book indicates a different
price.

## Off-Hours Pricing

Regional markets close overnight, on weekends, and on public holidays — sometimes for
multiple consecutive days. During closure the perp keeps trading, and the oracle follows a
deterministic discovery sequence:

1. **Anchor** at the last valid active-session oracle.
2. **Observe** the Scape order-book impact mid as the local target — it is never relabeled
   as an external assessment.
3. **Smooth** movement with a continuous-time EMA over a 6-hour lookback.
4. **Clamp** each update to a maximum move of 50 bps.
5. **Bound** cumulative movement within a 400 bps band around the current reference.
6. **Re-anchor** at 90% of band distance — the reference re-anchors to the edge and a new
   band forms.
7. **Cap** after two re-anchors per direction — the final band edge becomes a hard cap until
   active pricing resumes.

The Hyperliquid order book drives discovery during the closure. On the first fresh external
print, the oracle returns immediately to active passthrough, and any dislocation between the
perp and the fresh print converges through normal trading and
[funding](/market-mechanics/funding).

On public holidays the oracle does not run discovery: it holds flat at the last
active-session value with a 0 bps band.

## Current Parameters

| Parameter                   | Value                |
| --------------------------- | -------------------- |
| Freshness threshold         | 5 seconds            |
| Stale-hold budget           | 60 seconds           |
| EMA lookback                | 6 hours              |
| Per-update clamp            | 50 bps               |
| Cumulative band             | 400 bps              |
| Re-anchor trigger           | 90% of band distance |
| Re-anchor budget            | 2 per direction      |
| Holiday band                | 0 bps                |
| Maximum off-hours excursion | ≈ +12.5% / −11.5%    |

Parameters are deployer-controlled and may be assigned separately per market. The active
anchor, clamp, band, and consumed re-anchors are observable in operational feed metadata
during discovery.

## Governance

* Oracle updates are signed by dedicated sub-deployer keys authorized only for oracle pushes;
  the deployer master key is not used for routine updates. Two sub-deployer keys are
  authorized to support rotation and failover.
* The deployer stake is 500,000 HYPE, slashable on misconduct via stake-weighted validator
  vote.