Mark price

Mark Price is closely correlated with the funding rate, and vice versa. We use this Mark Price to prevent unnecessary liquidations for our traders and to deter market manipulation.

Since Unrealized PnL is the primary driver of liquidations, it's crucial to guarantee its accurate calculation to prevent unnecessary liquidations. Hence, Mark price is used for calculating unrealized PnL.

The mark price is a composite price derived from a basket of prices sourced from various major CEX Market exchanges, weighted according to their respective trading volumes.

Additionally, to prevent market spikes, there is a moving average price strategy in place to protect users.

Note: Perp Shield does not have an order book, and thus Mark price is equal to Last Price.