CoinEx employs a unique system called Fair Price Marking to avoid unnecessary liquidations in its highly leveraged products. The system is able to achieve this by setting the Mark Price of the contract to the Fair Price instead of the Last Price. Without this system, unnecessary liquidations may occur if the market is being manipulated, is illiquid, or the Mark Price swings unnecessarily relative to its Index Price.
All ADL contracts are subject to Fair Price Marking. Also note that Fair Price Marking only affects the Liquidation Price and Unrealized PNL, it does not affect Realized PNL.
Note: This means that you may see a positive or negative Unrealized PNL immediately after an order executes. This happens when the Fair Price is slightly different from the Last Price. This is normal and does not mean you have lost money, but be sure to keep an eye on your Liquidation Price to avoid a premature liquidation.
Fair Price Calculation
Fair Price = Index Price * (1 + Funding Basis)
Funding Basis = Funding Rate * (Time Until Funding / Funding Interval)