Index Price
1.What is the Index Price?
The Index Price is the core pricing benchmark for Perpetual Contracts. It aggregates real-time prices from multiple independent external data sources, applies data cleansing, validation, and weighted calculation, and is used to determine:
Mark Price: The reference price for calculating your position PnL and triggering forced liquidation.
Funding Rate: The benchmark for periodic payments between long and short positions.
Liquidation Trigger: When the Mark Price reaches the liquidation price, the position is closed.
A stable, fair, and manipulation-resistant Index Price is the cornerstone of a fair trading experience.
2. Data Sources for the Index Price
Our Index Price System connects to two categories of external data sources:
1.Traditional Financial Market Prices Gold Spot quotes (e.g., Mid Price / Bid-Ask Midpoint) from multiple internationally recognized financial institutions, covering major global trading sessions.
2.Major Cryptocurrency Exchange Prices Index prices (not the latest trade price) from leading cryptocurrency exchanges, covering gold token trading pairs denominated in stablecoins such as USDT and USDC, all unified and converted to USD via real-time exchange rates.
These data sources are independent and distributed. Even if a single source experiences an anomaly, it will not significantly impact the final Index Price, effectively preventing manipulation and single points of failure.
3. Calculation and Filtering Mechanism
The system applies multiple validation checks to each data source at all times to filter out anomalous data:
Timeliness Check: Data with a delay exceeding the threshold will be treated as invalid.
Price Deviation Filter: If a source's price deviates too far from the historical price or the median of all sources, that source will be temporarily excluded.
Observation Period Validation: Newly connected data sources must undergo a period of stable operation before being formally included in the calculation.
4. Example Calculation
Suppose a contract's latest bid prices at three exchanges are:
Click the image to view the full spreadsheet.
If weighted by trading volume — A: 0.5, B: 0.3, C: 0.2 — the contract Index Price is:
Index Price = 10,020 × 0.5 + 10,010 × 0.3 + 10,030 × 0.2 = 10,019 |
This value is the contract Index Price displayed to users on the platform.
5. Smooth Handling in Anomalous Scenarios
When a data source fails (e.g., network interruption or exchange downtime), the system will:
1.Automatically remove the failed source and redistribute its weight to other valid sources, ensuring the Index Price continues to be output.
2.When the failed source recovers, the system does not allow the price to jump instantaneously. Instead, it uses a linear transition (typically ~60 seconds) to smoothly transition from the current price to the new price incorporating the recovered source, avoiding price spikes.
This mechanism ensures the price series remains continuous and stable, with no abnormal fluctuations caused by source switching.
6. Protection in Extreme Scenarios
Even in the extremely unlikely event that all external data sources become unavailable simultaneously, the system will:
Prioritize using the most recent valid Index Price (within its validity period);
If recovery takes too long, trigger an alert and hand over to the operations team for manual intervention, ensuring maximum trading continuity.
7. How Do We Ensure Fairness?
- Multi-source Cross-validation: No reliance on a single price provider — risk is distributed.
- Fully Automated Anomaly Filtering: All cleansing rules are transparent and applied without human intervention.
- Real-time Monitoring and Alerts: The system monitors all data sources 24/7. Any anomaly triggers an alert and is handled automatically.
We are committed to providing you with a transparent, fair, and stable trading environment. If you have further questions about the Index Price, please refer to platform announcements or contact customer support.