**3.4 Oracles**

The current status of smart legal contracts is that the percentage of forming and performing a contract purely using computer codes is low (i.e Form 3). For the other two forms, interaction with external sources is facilitated by using oracles to retrieve off-chain data and information and push them to the chain. For example, in a situation to decide whether a threshold of adverse weather condition is reached on a specific day in order to decide whether a contractual event is triggered. Data from the metrology office can be injected into the chain via the oracle.

Risks arise from a failure of the oracle or inputting incorrect data in their smart legal contract. Terms and conditions on the reliability, accuracy, and timing of the external data sources are required to be included in any contracts between the parties as users and the external data sources provider.
