Data transmission delays in decentralized oracle networks (DONs) can significantly affect the accuracy of derivative settlements. DONs provide real-time market data to smart contracts, essential for determining correct payouts in derivatives. However, delays—caused by network congestion, node failures, or malicious activities—can result in outdated or inaccurate data. This creates discrepancies between actual market conditions and the data used, leading to incorrect settlements. Mitigation strategies like using multiple data sources, consensus algorithms, and time-stamping can enhance data integrity and timeliness. Without such measures, delays undermine the reliability and precision of derivative settlements, impacting their financial accuracy.