From ad7f8a6e1f27ef0fbad7e6797867233b98859cec Mon Sep 17 00:00:00 2001 From: devin distefano Date: Fri, 19 Dec 2025 11:30:06 -0800 Subject: [PATCH 1/2] docs risk update --- .../data-feeds/selecting-data-feeds.mdx | 48 ++++++++++--------- src/db/feedCategories.ts | 17 +++++-- src/db/supabase.ts | 4 +- src/features/feeds/components/FeedList.tsx | 3 +- src/features/feeds/components/Tables.tsx | 8 ++-- src/features/feeds/utils/feedVisibility.ts | 3 +- 6 files changed, 47 insertions(+), 36 deletions(-) diff --git a/src/content/data-feeds/selecting-data-feeds.mdx b/src/content/data-feeds/selecting-data-feeds.mdx index 490c954c80f..888b194e1f4 100644 --- a/src/content/data-feeds/selecting-data-feeds.mdx +++ b/src/content/data-feeds/selecting-data-feeds.mdx @@ -24,8 +24,9 @@ Data feeds are grouped into the following categories based on the level of marke - [🟒 Low Market Risk](#-low-market-risk-feeds) - [🟑 Medium Market Risk](#-medium-market-risk-feeds) -- [πŸ”΄ High Market Risk](#-high-market-risk-feeds) -- [🟠 New Token Feeds](#-new-token-feeds) +- [🟠 High Market Risk](#-high-market-risk-feeds) +- [πŸ”΄ Very High Market Risk](#-very-high-market-risk-feeds) +- [πŸ†• New Token Feeds](#-new-token-feeds) - [πŸ”΅ Custom Feeds](#-custom-feeds) - [β­• Deprecating](#-deprecating) @@ -52,44 +53,47 @@ These feeds also follow a standardized data feeds workflow to report market pric Types of market risk that may lead to a feed being categorized as Medium Market Risk include: -- Lower or inconsistent asset volume may result in periods of low liquidity in the market for such assets. This, in turn, can lead to volatile price movements +- Lower or inconsistent asset volume may result in periods of low liquidity in the market for such assets. This, in turn, can lead to volatile price movements. - A spread between the price for this asset on different trading venues or liquidity pools. - Market Concentration Risk: If the volume for a given asset is excessively concentrated on a single exchange, that trading venue could become a single point of failure for the feed. - Cross-Rate Risk: The base asset trades in large volumes against assets that are not pegged to the quote asset. As a result, the price of this specific asset pair may fluctuate even if the underlying asset is not being traded. - The asset is going through a significant market event such as a token or liquidity migration. - The asset has a high spread between data providers, the root cause of which is often one of the above factors. -### πŸ”΄ High Market Risk Feeds +### 🟠 High Market Risk Feeds -These feeds also follow a standardized data feeds workflow to report market prices for an asset pair. However, the pair in question often exhibits a heightened degree of some of the risk factors outlined under β€œMedium Market Risk”, or a separate risk that makes the market price subject to uncertainty or volatility. In using a High Market Risk data feed you acknowledge that you understand the risks associated with such a feed and that you are solely responsible for monitoring and mitigating such risks. +These feeds also follow a standardized data feeds workflow to report market prices for an asset pair. However, the pair in question often exhibits a heightened degree of some of the risk factors outlined under Medium Market Risk, or a separate risk that makes the market price subject to uncertainty or volatility. In using a High Market Risk data feed you acknowledge that you understand the risks associated with such a feed and that you are solely responsible for monitoring and mitigating such risks. Developers remain responsible for ensuring that protocol risk parameters are configured appropriately and that the operation and performance of High Market Risk data feeds matches expectations. High Market Risk data feeds may be deprecated. See the [Data Feed Shutdown Policy](#data-feed-shutdown-policy) for more information. -Types of market risk that may lead to a feed being categorized as High Market Risk include: +### πŸ”΄ Very High Market Risk Feeds + +Very High Market Risk feeds price assets with quotes that are subject to extreme levels of risk, greater than those outlined above for High Market Risk. Types of market risk that may lead to a feed being categorized as Very High Market Risk include, but are not limited to: - The asset is going through a significant market event such as a hack, bridge failure, or a delisting from a major exchange. - The asset or project is being deprecated in the market. - Volumes have dropped to extremely low levels. -### 🟠 New Token Feeds +Users should wind down their reliance on these feeds and/or implement strict capital and risk management policies accounting for extreme price and market structure volatility. Very High Market Risk feeds will be wound down over time in accordance with the [Data Feed Shutdown Policy](#data-feed-shutdown-policy). In using a Very High Market Risk data feed you acknowledge that you understand the risks associated with such a feed and that you are solely responsible for monitoring and mitigating such risks. You understand that Chainlink may not provide separate monitoring for these feeds. Developers remain responsible for ensuring that protocol risk parameters are configured appropriately and that the operation and performance of Very High Market Risk data feeds matches expectations. + +### πŸ†• New Token Feeds -When a token is newly launched, the historical data required to implement a rigorous risk assessment framework that would allow the categorization of a market data feed for that token as low, medium, or high market risk is unavailable. Consistent price discovery may involve an indeterminate amount of time. Users must understand the additional [market and volatility risks](https://docs.chain.link/data-feeds/selecting-data-feeds#evaluating-data-sources-and-risks) inherent with such assets. Users of new token feeds are responsible for independently verifying the liquidity and stability of the assets priced by the feeds that they use. -At the end of a probationary period, the status of new token feeds may be adjusted to high/medium/low market risk or in rare cases be deprecated entirely. +When a token is newly launched, the historical data required to implement a rigorous risk assessment framework that would allow the categorization of a market data feed for that token as Low, Medium, or High Market Risk is unavailable. Consistent price discovery may involve an indeterminate amount of time. Users must understand the additional [market and volatility risks](#evaluating-data-sources-and-risks) inherent with such assets. Users of New Token feeds are responsible for independently verifying the liquidity and stability of the assets priced by the feeds that they use. At the end of a probationary period, the status of New Token feeds may be adjusted to High, Medium, or Low Market Risk, or in rare cases be deprecated entirely. ### πŸ”΅ Custom Feeds Custom Feeds are built to serve a specific use case and might not be suitable for general use or your use case's risk parameters. Users must evaluate the properties of a feed to make sure it aligns with their intended use case. [Contact the Chainlink Labs team](https://chain.link/contact?ref_id=DataFeed) if you want more detail on any specific feeds in this category. -Custom feeds have the following categories and compositions: +Custom Feeds have the following categories and compositions: -- Onchain single source feeds: These feeds take their data from an onchain source, however, the feed has only a single data provider currently supporting the feed. -- Onchain Proof of Reserve Feeds: Chainlink Proof of Reserve uses a large decentralized collection of security-reviewed and Sybil-resistant node operators to acquire and verify reserve data. In this use case, reserves reside onchain. -- Exchange Rate Feeds: These feeds read an exchange rate from an external contract onchain that is designed to allow conversion from one token to another. Chainlink does not own or control these contracts in any way. They are not equivalent to market price feeds. -- Technical Feeds: Feeds within this category measure a particular technical metric from a specified blockchain. For example, Fast Gas or Block Difficulty. -- Total Value Locked Feeds: These feeds measure the total value locked in a particular protocol. -- Custom Index Feeds: An index calculates a function of the values for multiple underlying assets. The function is specific to that index and is typically calculated by node operators following an agreed formula. -- Offchain Single Source Feeds: Some data providers use a single data source, which might be necessary if only one source exists offchain for a specific type of data. -- Offchain Proof of Reserve Feeds: Chainlink Proof of Reserve uses a large decentralized collection of security-reviewed and Sybil-resistant node operators to acquire and verify reserve data. In this use case, reserves reside offchain. -- LP Token Feeds: These feeds use a decentralized feed for the underlying asset as well as calculations to value the liquidity pool (LP) tokens. -- Wrapped Calculated Feeds: These feeds are typically pegged 1:1 to the underlying token or asset. Under normal market conditions, these feeds track their underlying value accurately. However, given that the price is a derivative formed from a calculated method, the derivative asset may not always precisely track the value of the underlying token or asset precisely. +- **Onchain Single Source Feeds:** These feeds take their data from an onchain source, however, the feed has only a single data provider currently supporting the feed. +- **Onchain Proof of Reserve Feeds:** Chainlink Proof of Reserve uses a large decentralized collection of security-reviewed and Sybil-resistant node operators to acquire and verify reserve data. In this use case, reserves reside onchain. +- **Exchange Rate Feeds:** These feeds read an exchange rate from an external contract onchain that is designed to allow conversion from one token to another. Chainlink does not own or control these contracts in any way. They are not equivalent to market price feeds. +- **Technical Feeds:** Feeds within this category measure a particular technical metric from a specified blockchain. For example, Fast Gas or Block Difficulty. +- **Total Value Locked Feeds:** These feeds measure the total value locked in a particular protocol. +- **Custom Index Feeds:** An index calculates a function of the values for multiple underlying assets. The function is specific to that index and is typically calculated by node operators following an agreed formula. +- **Offchain Single Source Feeds:** Some data providers use a single data source, which might be necessary if only one source exists offchain for a specific type of data. +- **Offchain Proof of Reserve Feeds:** Chainlink Proof of Reserve uses a large decentralized collection of security-reviewed and Sybil-resistant node operators to acquire and verify reserve data. In this use case, reserves reside offchain. +- **LP Token Feeds:** These feeds use a decentralized feed for the underlying asset as well as calculations to value the liquidity pool (LP) tokens. +- **Wrapped Calculated Feeds:** These feeds are typically pegged 1:1 to the underlying token or asset. Under normal market conditions, these feeds track their underlying value accurately. However, given that the price is a derivative formed from a calculated method, the derivative asset may not always precisely track the value of the underlying token or asset. If you plan on using one of these feeds and would like to get a more detailed understanding, [contact the Chainlink Labs team](https://chain.link/contact?ref_id=DataFeed). @@ -99,9 +103,9 @@ These feeds are being deprecated. To find the deprecation dates for specific fee #### Data Feed Shutdown Policy -Data feeds managed by Chainlink Labs will be considered for deprecation if they pose a risk to the Chainlink Community and broader ecosystem, if the asset or assets on the feed have significantly deteriorated and no longer meet our Quality Assurance standards, or if the data feed has become economically unsustainable to support. +Data feeds managed by Chainlink Labs will be considered for deprecation if they pose a risk to the Chainlink Community and broader ecosystem, if the asset or assets (or their volume or liquidity) on the feed have significantly deteriorated or are unreliable and no longer meet our Quality Assurance standards, or if the data feed has become economically unsustainable to support. Users are therefore advised to ensure they have measures in place for the orderly deprecation of reliance on specific Chainlink price feeds. -Known users of these feeds will be contacted directly about the feeds' deprecation. Notifications will also be posted on the [Feeds Scheduled For Deprecation](/data-feeds/deprecating-feeds) page and on our [Discord channel](https://discord.com/channels/592041321326182401/991444378335838318) with two weeks of notice before they are shut down. +Known users of these feeds will be contacted directly about the feeds' deprecation whenever possible. Notifications will also be posted on the [Feeds Scheduled For Deprecation](/data-feeds/deprecating-feeds) page and on our [Discord channel](https://discord.com/channels/592041321326182401/991444378335838318) with two weeks of notice before they are shut down except where conditions require an accelerated deprecation. {/* prettier-ignore */}