> ## Documentation Index
> Fetch the complete documentation index at: https://docs.hyro.network/llms.txt
> Use this file to discover all available pages before exploring further.

# Oracle Infrastructure

> How NAV gets from Bybit onto Solana, and the safety checks that guard it.

The oracle is a NATS-based message queue with JetStream. It reads Bybit sub-account equity and posts NAV updates and challenge state to Solana.

## Cadence & reliability

|                |                                                                          |
| -------------- | ------------------------------------------------------------------------ |
| Update cadence | \~60 seconds during active hours                                         |
| Reliability    | JetStream provides message persistence, durability, delivery guarantees  |
| Authorization  | `policy_challenges.validate(Report)` requires `template.admin == signer` |

## Safety checks

<Warning>
  These checks pause the vault automatically when something looks wrong:
</Warning>

| Condition                                       | Action                             |
| ----------------------------------------------- | ---------------------------------- |
| API downtime > 5 minutes                        | Vault pauses withdrawals           |
| On-chain NAV diverges from Bybit equity by > 2% | Vault pauses                       |
| Independent watchdog                            | Cross-validates the primary reader |

All NAV updates are logged on-chain with a timestamp and Bybit equity reference.

## Oracle security

* Oracle keypair stored in KMS, rotated regularly, HSM integration for production
* Template-admin verification prevents unauthorized challenge updates
* Cryptographic message authentication
* Dead-letter queue for failed messages
* Independent watchdog reader (separate server, API key, region) cross-validates

## The trust assumption

<Warning>
  NAV reporting currently depends on oracle infrastructure operated by Hyro. While settlement, share accounting, fee logic, and payouts all occur on-chain, NAV reporting is the **single largest trust assumption in Phase 1**. A successful oracle attack could mint shares at a false NAV.
</Warning>

**The decentralization path:** independent watchdog cross-validation today → multi-signer oracle in Phase 2 → ZK proofs of CEX state via zkTLS in the long-term roadmap.

<Card title="Trust Assumptions" icon="shield-half" href="/resources/decentralization" horizontal>
  The full disclosure of what LPs trust today.
</Card>