Mark Price is used for all Unrealized PnL calculations. Please note that Realized PnL is still based on the actual executed market prices.
The Mark Price formula for Perpetual Futures contracts is as follows:
Mark Price = Median * (Price 1, Price 2, Contract Price)
Price 1 = Price Index*(1 + Last Funding Rate*(Time Until Funding /8))
Price 2 = Price Index + Moving Average (30-minute Basis) *
*Moving Average (30-minute Basis) = Moving Average ((Bid1+Ask1)/2- Price Index), which measures every minute in a 30-minute interval.
*Median: If Price 1 < Price 2 < Contract Price, then take Price 2 as Mark Price.
Please note that due to extreme market conditions or deviations in price sources, which may lead to the Mark Price deviating from the spot price, we will take additional protective measures, i.e. Mark Price = Price 2 in this scenario.
During the system upgrade or the system downtime that pend all trading activities, the Mark price calculation is as follows:
Keep the Mark Price formula but set Moving Average (30-minute Basis) in Price 2 to 0 until the system is back to normal.
Mark Price is a better estimate of the ‘true’ value of the contract, compared to Perpetual Futures prices which can be more volatile in the short term. We use this price to prevent unnecessary liquidations for traders and to discourage any market manipulations by ill-intended actors.
BingX Operation Team
Cryptocurrency prices are subject to high market risk and price volatility. You should only invest in products that you are familiar with and where you understand the associated risks. You should carefully consider your investment experience, financial situation, investment objectives and risk tolerance and consult an independent financial adviser prior to making any investment. This material is for reference only and should not be construed as financial advice. Past performance is not a reliable indicator of future performance. The value of your investment can go down as well as up, and you may not get back the amount you invested. You are solely responsible for your investment decisions. BingX is not responsible for any losses you may incur.
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