> For the complete documentation index, see [llms.txt](https://risk.infinity.exchange/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://risk.infinity.exchange/risk-matrix/operational-and-other-risks/gas-orcale-price-risk.md).

# Gas / Orcale Price Risk

**Gas Price Risk**: the Ethereum Blockchain has faced scalability and performance issues when handling a high volume of transactions. As a result, high gas fees, congestion and/or network delays not only affect the performance and reliability of smart contracts but ultimately delay transaction settlement resulting in increased settlement and credit risk.&#x20;

* During periods of stress, market participants trade concurrently and with the scarcity of gas at on layer 1s (in the case of Ethereum, 30 million gas per block), only a handful of transactions can be processed irrespective of the gas fees/premiums paid. Significant work will be required to create a high-fidelity experience in the future.

**Oracle Price Risk**: price oracles brings valuable financial market data to DeFi applications, by aggregating and publishing first-party price data on-chain for us by either on- or off-chain applications. The risk associated with price oracles consists of a manipulated feed or stream of wrong price(s) input to the smart contract, falsely reducing or increasing the price (value) of an asset, thereby creating an arbitrage opportunity for the manipulator.

To mitigate this potential risk, oracle providers could improve or maintain,

* The robustness of their price aggregation alongside a diversity of publishers (individuals or entities publishing price feeds in exchange for fees) are ways to decrease the risk of price manipulation
* Their governance standards to determine high-level parameters of ecosystem mechanisms and methodologies


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