In order to improve the stability of the contract market and reduce unnecessary market volatility, OceanEx perpetual contract uses a uniquely designed mark price system. This system sets the marked price to the fair price instead of the latest transaction price to avoid unnecessary liquidation.
1. Calculation formula
The marked price of the perpetual contract is calculated using the basic funding rate:
- Basis= FundingRate×(Time to the next payment of funds)
- Fair Price=Index Price∗(1+Basis rate)
2. Mark price mechanism
The marked price of the OceanEx perpetual contract is equal to the underlying index price plus the fund cost basis that decrements over time. All automatic deleveraging contracts use the marking method.
Please keep the following in mind:
- This method only affects the price of forced liquidation and unrealized profit and loss, it does not affect the realized profit and loss.
- Negative or unrealized profit and losses may occur immediately after the execution. This is caused by a slight deviation between the marked price and the transaction price, and it does not mean any loss.
- Pay attention to the liquidation price of the contract order and avoid being forced liquidated.