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.

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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.

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1. Reduces Unnecessary Liquidation Risk

   When the system checks whether a position should be liquidated, it uses the Index Price, not the last traded price on YUBIT. This avoids accidental liquidations caused by sudden, short-term price swings on a single exchange.

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1. Used for Funding Rate Calculations

   The funding rate is typically based on the Index Price, ensuring fair and stable rate calculations across different markets.

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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.

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Summary

• Index Price = A weighted average of prices from multiple major exchanges

• More stable, fair, and resistant to manipulation

• Used for:

  • Liquidation checks

  • Funding rate calculations

  • Risk control

• Designed to give traders a safer and more reliable experience, especially during extreme market conditions