Definition ∞ A price calculation error occurs when a digital asset’s value is incorrectly determined or displayed by an exchange, oracle, or protocol. These errors can stem from faulty data feeds, incorrect algorithm implementation, or technical glitches. Such inaccuracies can lead to incorrect trades, liquidations, or misrepresentation of asset portfolios. It compromises market fairness and operational reliability.
Context ∞ News about price calculation errors in the crypto space often highlights the technical complexities and potential vulnerabilities of digital asset platforms. These incidents can result in significant financial losses for users and reputational damage for platforms. Robust auditing and real-time data verification are critical to mitigating such occurrences.
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