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Index Price
The index price of MUFEX is derived from a weighted average of prices from major spot trading markets, obtained by considering their trading volumes. It is a comprehensive price index. (In the symbol ".XXX," "XXX" represents the abbreviation of the token name, such as BTC, ETH, XRP, or EOS.) Users can view the index price information on the respective data page of the trading interface.
The index price is determined by two main variables: Spot Price and Weight.
Spot Price
The token directly reflects the current real-time price quoted by various spot exchanges for the underlying asset.
Weight
Weight refers to the proportion of trading volume for each spot trading pair.
We have implemented additional protective measures to avoid poor market performance caused by disruptions in spot market prices or connectivity issues. These protective measures are as follows:
Deviation from a single price source: If the latest price from a specific exchange deviates more than 5% from the median price of all price sources, the weight assigned to that exchange's price will be set to zero.
If an exchange fails to update trading data within 10 seconds, its weight will be set to zero when calculating the weighted average.
The index price can be considered a fair representation of spot prices, and it is used to calculate the mark price (used to calculate unrealized profits and losses for each contract). Please note that actual profits and losses for an account are based on the market price at the time of liquidation.
For example
Assuming the spot prices and trading volume weights for the four major trading pairs of BTC are as follows:
Exchanges | Trading Pairs | Spot Price | Weight |
|---|---|---|---|
A | BTC/USDT | $19,832 | 35% |
B | BTC/USDC | $19,836 | 30% |
C | BTC/USDT | $19,830 | 20% |
D | BTC/USDT | $19,835 | 15% |
The index price for .BTCUSDT is $19,833.25, calculated using the following formula: Index Price = ($19,832 × 35%) + ($19,836 × 30%) + ($19,830 × 20%) + ($19,835 × 15%)
Last modified 5mo ago