What is Mark Price?

Mark Price is used to determine whether the user has triggered forced liquidation. It is calculated based on Index Price and Moving Average Premium Index.

CoinEx employs a unique system called Fair Price Marking, where instead of the Last Price, the Mark Price is set as the Fair Price to avoid unnecessary liquidations. Without this system, the Mark Price may deviate from the Index Price difference, when the market is being manipulated, or illiquid, leading to unnecessary liquidations.

1. Mark price updates every 5 seconds.

2. Mark price = index price * (1 + moving average premium index), moving average premium index = MA{[Max (0, depth weighted bid price - price index) - Max (0, price index - depth weighted ask price)] / price index}.

MA = the moving average of the premium index per minute from N hours ago to the current time point, N = the current funding fee collection interval.

What is Mark Price used for?

1. To determine whether the position has triggered forced liquidation: It helps prevent unnecessarily forced liquidations in high-leverage futures tradings and reduces the loss caused by price manipulation in futures trading and the lack of liquidity.

2. To calculate the floating profit or loss (PNL) of the position.

Note: Mark Price only affects the Liquidation Price and Unrealized PNL, and does not affect Realized PNL.