Concepts
Observation
How and when the protocol reads a close, and what each reading can cause.
Definition
An observation is the reading of one official close at a scheduled timestamp. Each series has 13: the strike plus 12 weekly observations.
Schedule
Timestamps are fixed at creation from TradingCalendar. Observations fall on the same weekday each week at the US market close (16:00 New York time).
Timing rule
If a scheduled day is a market holiday, the observation moves to the following business day. The rule is applied when the schedule is written, so it is visible in advance.
How the price is read
OracleAdapter reads the Chainlink round whose update time is the first at or after the close and within the staleness window. It does not take the latest price at call time.
Outcomes
| Close | Observations #2 to #12 | Observation #13 |
|---|---|---|
| ≥ autocall | Coupon paid, note ends early | Coupon paid, cash back |
| ≥ barrier | Coupon paid | Coupon paid, cash back |
| < barrier | No coupon | No coupon, stock delivered at S0 |
Ordering and liveness
Observations are processed in order by a permissionless crank. A late crank still uses the close that was due; it can never use a later price.
What is not an observation
- Intraday prints, however far they move.
- Weekend or after-hours prices on the 24/5 feed.
- Any price supplied by a caller.