The index price is the weighted average of the underlying asset's prices on major spot exchanges. The index price is continuously updated as the spot price of the underlying asset changes, reflecting the actual market value of the futures pair. MEXC selects the spot prices of the underlying asset from various major exchanges as the source of the futures index.
The purpose of setting the index price is to reduce the risk caused by price volatility and market manipulation, providing a more stable price reference.
Index Price = (Weight Percent of Exchange A * Spot Price of the Underlying Asset on Exchange A + Weight Percent of Exchange B * Spot Price of the Underlying Asset on Exchange B + ... + Weight Percent of Exchange N * Spot Price of the Underlying Asset on Exchange N)
MEXC will periodically update the index components and weights. If extreme market conditions or abnormal price deviations occur, MEXC will take additional protective measures, including but not limited to changing the index components and weights without prior notice.
If the market data from a particular exchange is frequently slow to update or has deviating prices, the spot price data from that exchange will be excluded from the calculation. If the data quality from the excluded exchange recovers, it will be included in the calculation again.
If the spot price of a particular exchange deviates from the median of all exchanges by ±3%, MEXC will implement a price protection mechanism and exclude the spot price from that exchange (under extreme market conditions, the platform may adjust the median deviation coefficient for certain trading pairs or not be bound by this arrangement).
The fair price is calculated based on the index price and the cost basis moving average.
To improve market stability and reduce unnecessary forced liquidations during abnormal market fluctuations, MEXC perpetual futures use a specially designed fair price marking system. Instead of using the last price, the system sets the mark price to the fair price. This helps prevent unnecessary deviations between the market price and the price index caused by market manipulation or lack of liquidity, thereby avoiding unnecessary forced liquidations.
On the MEXC futures trading page, you can view the [Fair Price] on the right side of the trading pair. Alternatively, you can set the K-line chart to display the [Fair Price] at the top of the chart.
Fair Price = Median (Funding Rate Premium, Mid-Price Basis Fair Price, Last Price)
Funding Rate Premium = Index Price * (1 + Latest Funding Rate * (Hours Until Next Funding Settlement / Funding Settlement Period in Hours))
Mid-Price Basis Fair Price = Index Price + Moving Average of Basis (specified period) = Index Price + Moving Average [(Best Bid Price + Best Ask Price) / 2 - Index Price]
Last Price is the most recent futures transaction price, updated in real-time.
The fair price only affects the liquidation price and unrealized PNL, it does not affect realized PNL.
This means that when MEXCers' orders are executed, they may see positive or negative unrealized profit and loss immediately. This happens due to a slight deviation between the Fair Price and the Last Price. This is a normal phenomenon and does not mean that MEXCers have lost funds, but MEXCers must pay attention to the forced liquidation price to avoid being forced to liquidate prematurely.
Market Trade price refers to the price at which futures pairs are instantly traded in the MEXC order book.
You can view this price by clicking on the [Market Trades] tab in the order book area on the MEXC futures trading page.
Disclaimer: This information does not provide advice on investment, taxation, legal, financial, accounting, consultation, or any other related services, nor does it constitute advice to purchase, sell, or hold any assets. MEXC Learn provides information for reference purposes only and does not constitute investment advice. Please ensure you fully understand the risks involved and exercise caution when investing. The platform is not responsible for users' investment decisions.