> For the complete documentation index, see [llms.txt](https://yubit.gitbook.io/yubit/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://yubit.gitbook.io/yubit/derivatives-trading/futures-faq/what-is-index-price.md). # What Is Index Price? The **Index Price** is a reference price used in perpetual contracts and other derivatives. It represents the **fair, aggregated market price** of an asset based on major exchanges, rather than relying on a single platform’s price.By pulling data from multiple markets, the Index Price provides a more stable and objective benchmark for trading and risk management. *** ### **Why the Index Price Matters** #### **1.Prevents Price Manipulation** Prices on a single exchange may spike due to low liquidity or abnormal trading activity. Using prices from multiple platforms reduces the impact of such anomalies and prevents unfair liquidations or incorrect settlements. *** #### **2.Used for Funding Rate Calculations** The funding rate is typically based on the Index Price, ensuring fair and stable rate calculations across different markets. *** ### **How the Index Price Is Calculated** YUBIT aggregates price data for the same trading pair from several major exchanges (such as Binance, OKX, Bybit, etc.). These prices are then combined using a **weighted average formula**, resulting in a fair and balanced Index Price. *** ### **Summary** * **Index Price** = A weighted average of prices from multiple major exchanges * More **stable**, **fair**, and **resistant to manipulation** * Used for: * Funding rate calculations * Risk control * Designed to give traders a **safer and more reliable experience**, especially during extreme market conditions --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://yubit.gitbook.io/yubit/derivatives-trading/futures-faq/what-is-index-price.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.