The index price represents a certain fair value of cryptocurrency assets and can serve as a more stable reference point to reduce the risks associated with price volatility and market manipulation. It not only considers the last price of a single asset but also incorporates the prices from multiple exchanges, providing a more comprehensive and fair market price.
The index price is determined by three key variables: the current quote, the equivalent price of USDT trading pairs, and real-time weights. The current quote is the last price of each trading pair in the market, the equivalent price of USDT trading pairs converts the prices of other trading pairs into USDT pricing, and the real-time weights are adjusted according to risk control rules.
The index price on Gate.io is derived from the weighted average price of multiple component exchanges, based on their assigned weights. The source, weights, and historical index prices of the index can be referenced on the Contract Details page.
The component weights for Gate.io’s index price are adjusted in real time according to risk control rules, and there is an anomaly filtering mechanism to protect the index price.
Taking BTC_USDT as an example, the index price for this trading pair is sourced from six exchanges: Binance, Bybit, Gate.io, OKX, KuCoin, and MEXC.
The formula for calculating the index price is as follows:
Index Price = A component exchange’s last spot price A component weight + B component exchange’s last spot price B component weight + C component exchange’s last spot price C component weight + … + F component exchange’s last spot price F component weightIndex Price = A component exchange’s last spot price A component weight + B component exchange’s last spot price B component weight + C component exchange’s last spot price C component weight + … + F component exchange’s last spot price F component weight
Gate.io reserves the final right to interpret the product.
