Understanding Index Price
The index price is calculated based on spot prices from multiple leading cryptocurrency exchanges, providing users with a more stable and fair trading benchmark. Currently referenced exchanges include:
- Binance
- OKX
- Huobi
- Coinbase
- Poloniex
Important: Reference exchanges may be temporarily removed from the system due to unforeseen abnormal conditions.
BTC/USDT Example
For BTC/USDT pairs, the index price derives from four exchanges: Binance, Huobi, Coinbase, and OKX. The system implements protective mechanisms when:
- An exchange's spot price significantly deviates from the average (>3%)
- Price data fails to update
👉 Learn how exchange selection protects your trades
This price-stabilizing approach helps maintain trading fairness during market volatility. Exchanges exhibiting consistent price abnormalities will be permanently replaced.
Mark Price Fundamentals
Mark Price = Index Price + Moving Average of Basis Difference
Key applications:
- Account profit/loss calculation
- Liquidation determination (Note: Liquidations trigger based on mark price, not last traded price)
Purpose and Mechanism
Mark price serves as the market's "fair value" indicator by:
- Anchoring contract prices to spot markets
- Preventing unnecessary liquidations
- Discouraging price manipulation
When external BTC spot price is $50,000 while on-platform price reaches $50,100:
- Long positions face higher liquidation risks
- The system incentivizes shorting to correct prices
This creates market equilibrium while protecting traders from extreme volatility.
Trading Protection Protocols
TruBit Pro implements multiple safeguards:
Price Protection Bands
- Upper Limit: Rejects excessively high buy orders
- Lower Limit: Rejects excessively low sell orders
Anti-Abuse Measures
Accounts exhibiting these patterns face restrictions:
- Average position time <5 minutes
- Open/close trades >80% of total volume
- Associated profits may be forfeited
FAQs
Why does mark price differ from trading price?
Mark price smooths volatility by combining index prices with basis trends, while trading price reflects immediate market demand.
How often are reference exchanges updated?
Exchange composition reviews occur quarterly, with immediate removals for technical issues or price anomalies.
What happens during exchange downtime?
The system automatically excludes malfunctioning exchanges until normal operations resume.
👉 See real-time protection in action
For further questions, contact TruBit support via email or live chat. Responses typically provided within 24 business hours.