AstralX's mark price is used to anchor cryptocurrency market prices, prompting contract prices to converge toward the price of the underlying asset. The mark price primarily serves the following purposes:
- As a basis for determining position liquidation: The mark price is used to calculate the unrealized profit and loss of a position. When the margin status of a position reaches the conditions for forced liquidation, liquidation may be triggered. Therefore, the mark price affects the determination of whether a position will be liquidated.
- Helping determine whether the opening price is reasonable: Traders can refer to the mark price when opening a position to determine whether the opening price deviates significantly from the market price and assess the associated risks.
How is the mark price calculated?
AstralX's mark price is the median of the following three prices:
Mark price = the median of (Price 1, Price 2, and the contract price)
Where:
- Price 1 = Index price × [1 + Funding rate × (Time until the next funding rate charge [hours] ÷ 8)]
The index price here is the benchmark price for Astral contracts. The funding rate is a market mechanism used to balance the difference between the contract price and the price of the underlying asset. The time until the next funding rate charge indicates how many hours remain until the next funding rate settlement time.
- Price 2 = Index price + Moving average (30-minute basis)
The moving average here is the average of price changes calculated at 30-minute intervals. It reflects market price trends by calculating sample values each minute.
- Moving average (30-minute basis) = Moving average of “(Best bid price + Best ask price) ÷ 2 − Index price”
Using a 30-minute calculation period, samples are taken once per minute. This moving average is based on the prices in the order book and compares them with the index price to measure market buying and selling pressure.
- Funding rate = [(Best bid price + Best ask price) ÷ 2 − Index price] ÷ Index price − Funding rate settlement interest
The funding rate is the rate paid or collected between contract holders. It is based on the difference between the prices in the order book and the index price, and takes funding rate settlement interest into account.
In summary, Astral's mark price uses multiple factors, including the index price, funding rate, and moving average, to provide a “true” valuation of the contract and help prevent unnecessary liquidations and market manipulation.
Disclaimer
This article is provided for product explanation and educational reference only. It does not constitute investment, trading, financial, or legal advice, nor does it constitute an offer to buy or sell any digital assets. The examples in this article are for illustrative purposes only and do not take into account factors such as transaction fees and funding fees. Actual results may differ.
Product features, trading rules, fees, and page information may be adjusted. If this article is inconsistent with the latest AstralX announcements or the information displayed on the trading page, the applicable latest rules and the information displayed on the actual page shall prevail.
Digital asset contract trading involves high risks. Leverage amplifies the impact of price fluctuations on margin, and you may lose all of your invested margin. Before trading, please fully understand the product rules and make prudent decisions based on your financial situation and risk tolerance.