Mark Price
Last updated
Last updated
To improve the stability of the contract market and reduce unnecessary forced liquidations during periods of high volatility, the system uses a marked price rather than the last traded price. The marked price is used to:
Calculate a user's unrealized profit and loss (PnL)
Trigger forced position reductions (liquidations) when necessary
Where:
Platest: Latest transaction-related price
Preasonable: Reasonable theoretical price
Pma: Moving average adjusted price
This is the median of three values:
Where:
Pbuy1: Best bid (Buy 1)
Psell1: Best ask (Sell 1)
Ptrade: Last transaction price
Calculated as:
Where:
Pindex: Spot market index price
Fprev: Funding rate of the previous period
tremain: Time remaining until the next funding fee settlement
T: Funding fee settlement interval (e.g., 480 minutes for 8-hour cycles)
Where:
MA5(Δ): 5-minute moving average of the spread
Spread Δ(n) is defined as:
And:
Pexchange(n): Exchange’s median price at time nnn
Pindex: Index price at time nnn
The marked price integrates:
Short-term trading dynamics
Fair value via funding-adjusted index pricing
Smoothing through moving averages
This hybrid pricing mechanism enhances risk control and protects users from unfair liquidations during momentary price spikes or dips.