> For the complete documentation index, see [llms.txt](https://docs.dmex.app/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.dmex.app/oracle.md).

# Oracle

DMEX implements a unique approach to trading real-world and crypto assets without the actual underlying asset changing hands. Given the blockchain implementation and the use of a decentralised oracle (CHAINLINK) this trading method actually provides exactly the same trading experience while being more secure than a traditional centralised exchange.

## Settlement and Liquidation Price

When a position expires or reaches the liquidation price, DMEX calls on the Oracle to record the latest [MARK PRICE](/definitions/mark-price.md) on the blockchain.

{% hint style="info" %}
To see the price source for each asset scroll down to the [ASSETS](/assets/btc.md) section and select an asset.
{% endhint %}

Only after the latest MARK PRICE is recorded on the DMEX smart contract, the position can be settled or liquidated.

{% hint style="success" %}
The use of an Oracle is crucial to the safety of user funds, because it eliminates the risk of price manipulation on the part of DMEX owners.
{% endhint %}


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