# 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](https://docs.dmex.app/definitions/mark-price) on the blockchain.

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To see the price source for each asset scroll down to the [ASSETS](https://docs.dmex.app/assets/btc) section and select an asset.
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Only after the latest MARK PRICE is recorded on the DMEX smart contract, the position can be settled or liquidated.

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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.
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