Selecting Quality Data Streams

When you design your applications, consider the quality of the data that you use. Ultimately you are responsible for identifying and assessing the accuracy, availability, and quality of data that you choose to consume via the Chainlink Network. Note that all streams contain some inherent risk. Read the Data Streams Best Practices and Developer Responsibilities sections when making design decisions.

For a summary of data sourcing models by asset type, see Data Sources.

Data Stream Categories

This categorization is put in place to inform users about the intended use cases of streams and help highlight some of the inherent market integrity risks surrounding the data quality of these streams.

Data streams are grouped into the following categories based on the level of market pricing risk, based on multiple factors, from lowest to highest:

Market pricing risk by category

These subsections describe standard market price streams at each pricing risk level and correspond to the category list above.

🟢 Low Market Pricing Risk Streams

These are data streams that follow a standardized data streams workflow to report market prices for an asset pair. Chainlink node operators each query several sources for the market price and aggregate the estimates provided by those sources.

Low Market Pricing Risk streams have the following characteristics:

  • More resilient to disruption than other streams
  • Leverage multiple data sources when they are available
  • Higher volumes across multiple markets enables price discovery

While Market Pricing Risk may be categorized as low, other risks might still exist based on your use case, data provider availability or performance, the blockchain on which the stream is deployed, and the conditions on that chain. Developers remain responsible for ensuring that protocol risk parameters are configured appropriately and that the operation and performance of Low Market Pricing Risk data streams match expectations. For users integrating a custom stream, please review the Custom Streams section for additional considerations.

🟡 Medium Market Pricing Risk Streams

These streams also follow a standardized data streams workflow to report market prices for an asset pair. The pair in question may have features that make it more challenging to reliably price, or potentially subject it to volatility, which may pose a risk in some use cases. While the architecture of these streams is resilient and distributed, these streams carry additional Market Pricing Risk.

Types of Market Pricing Risk that may lead to a stream being categorized as Medium Market Pricing Risk include:

  • Lower or inconsistent asset volume may result in periods of low liquidity in the market for such assets. This, in turn, can lead to volatile price movements.
  • A spread between the price for this asset on different trading venues or liquidity pools.
  • Market Concentration Risk: If the volume for a given asset is excessively concentrated on a single exchange, that trading venue could become a single point of failure for the stream.
  • Cross-Rate Risk: The base asset trades in large volumes against assets that are not pegged to the quote asset. As a result, the price of this specific asset pair may fluctuate even if the underlying asset is not being traded.
  • The asset is going through a significant market event such as a token or liquidity migration.
  • The asset has a high spread between data providers, the root cause of which is often one of the above factors.
  • The availability of pricing sources may be subject to change based on concentration, trading venue location, and currency pairs.

Developers remain responsible for ensuring that protocol risk parameters are configured appropriately and that the operation and performance of Medium Market Pricing Risk data streams match expectations. For users integrating a custom stream, please review the Custom Streams section for additional considerations.

🟠 High Market Pricing Risk Streams

These streams also follow a standardized data streams workflow to report market prices for an asset pair. However, the pair in question often exhibits a heightened degree of some of the risk factors outlined under Medium Market Pricing Risk, or a separate risk that makes the market price subject to uncertainty or volatility. In using a High Market Pricing Risk data stream you acknowledge that you understand the risks associated with such a stream and that you are solely responsible for monitoring and mitigating such risks.

Developers remain responsible for ensuring that protocol risk parameters are configured appropriately and that the operation and performance of High Market Pricing Risk data streams match expectations. For users integrating a custom stream, please review the Custom Streams section for additional considerations. High Market Pricing Risk streams may be deprecated. See the stream deprecation policy for more information.

🔴 Very High Market Pricing Risk Streams

Very High Market Pricing Risk streams price assets with quotes that are subject to extreme levels of risk, greater than those outlined above for High Market Pricing Risk. Types of Market Pricing Risk that may lead to a stream being categorized as Very High Market Pricing Risk include, but are not limited to:

  • The asset is going through a significant market event such as a hack, bridge failure, or a delisting from a major exchange.
  • The asset or project is being deprecated in the market.
  • Volumes have dropped to extremely low levels.
  • Reliable pricing sources for asset are extremely limited.

Users should wind down their reliance on these streams and/or implement strict capital and risk management policies accounting for extreme price and market structure volatility. Very High Market Pricing Risk streams will be wound down over time in accordance with the stream deprecation policy. In using a Very High Market Pricing Risk data stream you acknowledge that you understand the risks associated with such a stream and that you are solely responsible for monitoring and mitigating such risks. You understand that Chainlink may not provide separate monitoring for these streams. Developers remain responsible for ensuring that protocol risk parameters are configured appropriately and that the operation and performance of Very High Market Pricing Risk data streams match expectations. For users integrating a custom stream, please review the Custom Streams section for additional considerations.

🆕 New Token Streams

When a token is newly launched, the historical data required to implement a rigorous risk assessment framework that would allow the categorization of a market data stream for that token as Low, Medium, or High Pricing Risk is unavailable. Consistent price discovery may involve an indeterminate amount of time. Users must understand the additional market and volatility risks inherent with such assets. Users of New Token Streams are responsible for independently verifying the liquidity and stability of the assets priced by the streams that they use. At the end of a probationary period, the status of New Token Streams may be adjusted to Very High, High, Medium, or Low Market Pricing Risk, or in rare cases be deprecated entirely.

Developers remain responsible for ensuring that protocol risk parameters are configured appropriately and that the operation and performance of New Token Streams match expectations. For users integrating a custom stream, please review the Custom Streams section for additional considerations.

🔵 Custom Streams

Custom Streams are built to serve a specific use case and might not be suitable for general use or your use case's risk parameters. Users must evaluate the properties of a stream to make sure it aligns with their intended use case. Contact the Chainlink Labs team if you want more detail on any specific streams in this category.

If you plan on using one of these streams and would like to get a more detailed understanding, contact the Chainlink Labs team. Using streams that were not specifically designed for your use case involves risk. Users are responsible for thoroughly vetting and validating such deployments and determining their suitability.

⭕ Deprecating

These streams are being deprecated. To find the deprecation dates for specific streams, see the Data Streams Scheduled For Deprecation page.

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