To protect users’ assets and avoid unnecessary forced liquidations due to abnormal price fluctuations, CoinEx has established an Index Price protection mechanism and exception-handling system. When the price of a constituent exchange experiences abnormal fluctuations or when extreme market conditions occur, the system will automatically adjust the composition of the Index Price to ensure that it reflects a fair market value.
About the Index Price
The Index Price is calculated by referencing spot prices from multiple major exchanges, providing a more accurate reflection of the overall market level of a given asset
CoinEx uses the Index Price as the basis for calculating the Mark Price, which is applied to unrealized PNL calculations, forced liquidations, and funding rate settlement in futures trading. This mechanism effectively reduces the impact of abnormal price fluctuations from any single exchange on users’ positions.
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Update & Exception Removal Rules
| Update Frequency | The Index Price is updated every 5 seconds. |
| Trade Time Check | The system checks whether the most recent trade time of each constituent exchange exceeds the time limit specified for the market. If it does, the exchange will be removed from the index. |
| Price Availability Check | If price data cannot be obtained for a continuous period, the exchange will be removed from the index. |
Price Deviation Removal Rules
(1) When the number of index constituents N ≥ 3:
| Reference Benchmark | Real-time calculation of each exchange’s price deviation relative to the median price. |
| Removal Condition | If an exchange’s price deviation relative to the median price is greater than or equal to the specified threshold, it will be removed. |
| Deviation Thresholds | BTCUSDT, ETHUSDT, BTCUSDC, ETHUSDC: 2% |
| Other markets: 10% |
Note: The median-based mechanism helps effectively filter abnormal quotes and enhance index stability.
(2) When the number of index constituents N < 3:
| Reference Benchmark | Every 5 seconds, each exchange’s raw price is compared against the Index Price from the previous update. |
| Removal Condition | If the price deviation is greater than or equal to 10%, the exchange will be removed. |
Note: When the number of constituent exchanges is limited, a relatively conservative threshold mechanism is adopted to control risk.
(3) When the number of index constituents N = 0:
If all constituents are removed, the system will use the latest execution price of the market as the Index Price.
Through multi-layer anomaly detection and dynamic component adjustment mechanisms, CoinEx strives to minimize the impact of abnormal prices on futures positions, reduce the risk of unnecessary liquidations, and enhance market stability while safeguarding users’ assets.