Undisciplined Local Clock
The Undisciplined Local Clock should, generally, only be used when an
ntpd must be able to serve time to others even when no
real time sources are reachable. Please see the
Distribution Documentation for information about other applications for the Undisciplined Local Clock.

The Undisciplined Local Clock is
not a back-up for leaf-node (i.e. client only) ntpds.
It important that time servers using the Undisciplined Local Clock are not considered as authoritative sources of time by systems on the public Internet. Although the default stratum for the Undisciplined Local Clock is 5, in cases where an
ntpd may become accessible outside of your immediate, controlled, network is it strongly suggested the the stratum of the Undisciplined Local Clock be raised to no less than 10.

Users of ntp-4.2.2, and later, may wish to consider
OrphanMode as a means of keeping a group of server synchronized.
Configuration
The configuration examples shown here are to be added to
ntp.conf in addition to the other configuration directives (e.g. driftfile, statistics, logging, crypto, restrictions, servers, etc.).
There is no required order for these configuration directives.
Single Time Server
server 127.127.1.0
fudge 127.127.1.0 stratum 10
Dual Time Servers
Choose the two systems with the most stable clocks from your group of servers. They should not be virtual machines and they should not be heavily loaded systems. In fact, an old Pentium-1 system dedicated as a time server is often your best choice.
These systems will be configured with the Undisciplined Local Clock with staggered strata (two levels apart). The lowest stratum to use for your primary backup time server should be
at least 2 higher than where this
ntpd would normally run. If these time servers are publically accessible please use a higher stratum for the Undisciplined Local Clock in your primary back-up server.
Primary back-up server
# We are normally synced to a stratum-2 remote time server
server 127.127.1.0
fudge 127.127.1.0 stratum 5
Secondary back-up server
# Our primary back-up server will operate at stratum 6
server 127.127.1.0
fudge 127.127.1.0 stratum 7
Related Topics: Distribution Documentation: Undisciplined Local Clock,
OrphanMode