# Decentralized Derivatives Pricing Models
Valuation of derivatives in DeFi leveraging on-chain data, oracle feeds, and smart contracts, adapting traditional pricing models for decentralized, trustless markets.
Decentralized Derivatives Pricing Models adapt traditional pricing frameworks (e.g., Black-Scholes) to operate in a decentralized environment where data is sourced from on-chain price feeds and external oracles. They must handle stochastic price dynamics of crypto assets, regime shifts, and liquidity constraints while ensuring transparent, verifiable settlement via smart contracts. Key considerations include data feed reliability, oracle design, model risk, calibration (parameter estimation and backtesting on noisy on-chain data), on-chain [governance](/fr/terms/on-chain-governance) of parameters, settlement mechanics, and how fees, gas costs, and network [latency](/fr/terms/network-latency) influence pricing and risk. Practical architectures combine pricing logic with automated [market maker](/fr/terms/automated-market-maker) (AMM) style liquidity mechanisms, risk controls, margin requirements, and replay-attack resistant settlement to enable trustless derivatives trading on DeFi platforms.
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Rel_decentralized_cloud_computing["decentralized-cloud-computing"]:::related -.-> Center
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❓ Questions fréquentes
What are decentralized derivatives pricing models?
They are on-chain mathematical frameworks that price and settle derivatives using smart contracts and oracle-provided data, removing reliance on centralized intermediaries.
How is volatility modeled in DeFi pricing?
Volatility can be modeled using on-chain realized variance, implied variance from option markets, or parametric models adapted to crypto return distributions.
What is the role of oracles?
Oracles supply price feeds and data necessary for model inputs; robust designs mitigate oracle manipulation and latency.
What are key risks?
Model risk, oracle risk, liquidity risk, settlement risk, and gas/nonce risk affecting price accuracy and execution.
How are prices settled?
Prices settle via smart contracts with collateralized positions; settlement can occur on-chain with deterministic finality.