Partnership Announcement

Bybit is updating the calculation rules for the Index Price and Mark Price to better reflect market conditions and protect traders.

The new calculation rules will begin to apply to a number of contracts on July 18, 2022, 3AM UTC and cover all contracts on Aug. 9, 2022, 3AM UTC. Please refer to the table below for the detailed schedule.

The Weight, which will be used to calculate the sum of the weighted Spot trading prices for a coin from four major global Spot exchanges, will be adjusted every four hours instead of every month. 

The Real-Time Weight, one of the three variables currently used to derive the index price, will no longer be used as a variable for the index price calculation. 

After the adjustment, a single weight, derived from the respective four-hour trading volume of the top four Spot exchanges, and the current quote will be the two variables used to determine the Index Price.

For details about the Index Price Calculation, please visit our Help Center. (link to https://www.bybit.com/en-US/help-center/bybitHC_Article?language=en_US&id=000001055)

Apart from the Last Traded Price, two prices are added to calculate the Mark Price for different scenarios.

Mark Price = Median (Price 1, Price 2, Last Traded Price)

Price 1 = Index Price × [1 + Last Funding Rate × (Time Until Funding /8)]

Price 2 = Index Price + Moving Average (30-minute Basis) 

Moving Average (30-minute Basis) = Moving Average [(Bid1 + Ask1)/2 − Index Price], which measures every second in a 30-minute interval.

In the following scenarios, Bybit will adjust the criteria for selecting the mark price to be used for calculation:

If the index price of any Spot exchange is abnormal or data cannot be obtained, and thus the total weight of the remaining exchanges is less than 50%, the mark price will be calculated based on the last traded price on the Bybit platform.

Due to factors such as index price distortion, there is insufficient data to calculate the 30-minute moving average. In this scenario, the mark price will be calculated by Bybit's last traded price.

If the state of Abs(Index price - Last Price)/Index price > 1% lasts for more than 30 minutes, the price of the Spot market and the Derivatives market is considered to be deviating, and the mark price is calculated as Price 2.

Bybit is updating the calculation rules for the Index Price and Mark Price.

Bybit to Adjust Index Price and Mark Price Calculations

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