The Index Price is a comprehensive index after weighted calculation with reference to the market prices of multiple mainstream exchanges. The reference exchanges mainly include Binance, Bybit, OKX, KuCoin, Kraken, Gate.io, etc.

You can learn about these exchanges and their weights referenced by each market contract index in Futures Market Info.

To protect user assets and avoid unnecessary liquidation, CoinEx has adopted a price protection mechanism for the index price and an anticipatory mechanism, that is, when the price of a single exchange fluctuates abnormally or when the market experiences extreme changes, the system will automatically adjust the components of the index price to ensure that it fluctuates within the normal range.

The rules are as follows:

1. Update frequency: The index price is updated every 5 seconds.

2. Connection issue: When the price of an exchange is not available for more than 1 minute, the weight of this exchange will be set to 0 and will be resumed until the next index update calculation.

3. Price deviation: If the latest market price obtained by any exchange deviates more than 10% from the last updated index price, the weight of this exchange will be set to 0 until the price is back to normal.

4. "Bottomline" mechanism: If all reference exchanges have triggered risk control and their weights turn 0, the latest transaction price in CoinEx spot market will be used as the index price until all return to normal.

As a fair price that reasonably reflects the crypto price, the Index Price is also the calculation basis of the Mark Price, which is used to calculate the unrealized PNL and forced liquidation price of Futures positions.