The Mark Price is made up of the global spot price index and funding basis rate, in other words, a real-time spot price on major cryptocurrency exchanges. In addition, MCS uses the Mark Price as the trigger for liquidations. If the Last Traded Price is used as the trigger of liquidation, when the Last Traded Price is significantly deviated from the spot price due to any market manipulation or illiquidity, there are high chances of unnecessary liquidations. Therefore, the traders' position will only be liquidated when the mark price reaches the liquidation price on MCS.
Mark Price Equation
$$ \textsf{Mark Price [MP]} = {\textsf{Index Price}\times \textsf{1 + *Funding Basis}} $$
\begin{align}&\scriptsize\textsf{*Funding Basis}={\textsf{Current Funding Rate}}\times{\textsf{Time until Funding}\over\textsf{Funding Interval}}\end{align}
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