What is Perpetuals mark price?
Mark price is the fair price for perpetuals market to calculate unsettled P&L of positions and generate real-time funding rates.
Calculation of mark price
The mark price of BIT is derived using both the BIT index and the fair price of USD margined perpetual swap market as follows:
Mark Price = Index Price + 30 seconds EMA* of (Average of Fair Bid & Ask - Index Price)
*EMA: An exponential moving average (EMA) is a type of moving average (MA) that places a greater weight on the most recent data points. The exponential moving average is also referred to as the exponentially weighted moving average.
Mark Price is limited within 1% from BIT Index against manipulative trading, where 1% is determined by BIT risk team. The price limit will be adjusted according to the market condition, please refer to the BIT announcement on the website.
How to check the mark price
Mark price is slightly different from index price, you could track the real-time mark price on the top of the contract trading page.