what is mark price
In order to improve the stability of the contract market and reduce unnecessary forced liquidation when the market fluctuates abnormally, we use the mark price to calculate the user's unrealized profit and loss and trigger forced liquidation.
Mark Price Algorithm
mark price = median (latest price, fair price, moving average price)
in:
Latest price = middle price of this exchange = median (buy 1, sell 1, transaction price)
Reasonable price = index price * (1 + funding rate of the previous period * (the time between the current period and the next funding fee collection / funding rate collection interval))
Moving Average Price = Index Price + 60-Minute Moving Average (Spread)
Spread = middle price of this exchange - index price
The mark price takes into account both the spot index price and the moving average of the basis. The moving average mechanism smoothes out short-term contract price fluctuations and reduces unnecessary forced liquidation caused by abnormal fluctuations.