The Price Index is a bucket of prices from the major Spot market exchanges, weighted by their relative volume. The Price Index for USDT Perpetual Contract derived prices from Binance, Bybit, OKX, Gate.io, Kucoin, Bitstamp, CoinbasePro, Kraken, Gemini, Bittrex.
There are additional protections to avoid poor market performance during outages of Spot exchanges or during connectivity problems:
- If an exchange in the index price stops service or the price is not updated (the price timestamp is more than 15 minutes ago), and no transaction is released for more than 15 minutes, the exchange will automatically remove the weighted price of the exchange from the index = SUM (the price of an exchange * the weight of the exchange) / SUM (the weight of the exchange participating in the calculation)
- If an exchange’s price cannot be retrieved, the spot price of the corresponding trading pair on Tapbit will serve as the index price until normal data acquisition from the index component exchanges is restored.
- If individual prices among index component platforms deviate significantly, all component platform prices will be sorted from highest to lowest. If the top platform’s price exceeds the second platform’s price by more than 1%, its weight in the index will be temporarily reduced to 1/N of its original weight. Similarly, if the last platform’s price is more than 1% lower than that of the second lowest platform, its weight will also be reduced to 1/N of its original weight until the price difference returns to within 1% between the highest and lowest platforms.
- If the individual price deviations of the index component platforms are too large, the prices of all the component platforms are sorted from high to low. If the price of the first platform differs from the price of the second by more than 3%, it will be temporarily excluded from the index price component; If the price of the last platform differs from the price of the penultimate by more than 3%, it will be temporarily excluded from the index price component. Until the price difference is restored to within 3% of the head and tail platform.
Tapbit Team
