# Hybrid Oracles Hybrid Oracles combine TWAP Oracle with the Zero Coupon Bond pricing model for the PT in underlying asset by returning the maximum between the two feeds. Additionally, hybrid oracles upper bound the PT price by its redemption value. Such approach enables 1. Having a LTV threshold under which no position can be liquidated by providing a lower bound on the price 2. Provide additional safeguards against price manipulation ### Combining the TWAP Oracle with the Zero Coupon Bond Model Assume we are given an expected implied rate $$R$$ at which we assume the PT will be trading. We then instantiate a Deterministic Oracle based on Zero Coupon Bond Model using the implied rate $$R$$, as described in [Zero Coupon Bond Model](/integration-reference/spectra-oracles/deterministic-oracles/zero-coupon-bond-model.md), along with a [TWAP Oracle](/integration-reference/spectra-oracles/twap-oracles.md) that simply reports the EMA of the PT price in underlying asset. We combine the two feeds by reporting the maximum between their two values. This allows to lower bound the TWAP oracle value in case of a large rise in the implied rate, thus effectively defining a LTV threshold at which no position can be liquidated assuming no negative rate. More specifically, let $$D(t)$$ be the value of the ZCB model based oracle at time $$t$$ and $$S(t)$$ be the value of the TWAP oracle feed at time $$t$$. The hybrid oracle combines those two feeds by reporting $$ H(t) = \min {\alpha, \max{D(t), S(t)}} $$ where $$\alpha$$ is the redemption value of the PT. #### Deployment We describe in the [TWAP and Hybrid Oracles Deployment](/integration-reference/spectra-oracles/oracle-deployment/twap-and-hybrid-oracles-deployment.md)how to deploy an instance of the Hybrid Oracle through the TWAP oracle factory. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://dev.spectra.finance/integration-reference/spectra-oracles/hybrid-oracles.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.