Announcements Gate.io Will Adjust Mark Price Calculation for Perpetual Contracts

Gate.io Will Adjust Mark Price Calculation for Perpetual Contracts

2023-10-16 07:34:55 UTC 21108 Read

[//]:content-type-MARKDOWN-DONOT-DELETE
To make sure the Mark Price of perpetual futures always indicates the fair price of the underlying asset in the changing market conditions, Gate.io will adjust the calculations of Mark Price to a more robust and sound mechanism. In this update, Price 2 will be calculated in the new method. See below for details
Existing Mark Price calculations:
Mark Price=Mid (Price 1, Price2, Last Price)

Price1 =Index Price x（1 + Funding Basis）
** Funding Basis = Funding Rate x（Time Til Next Funding / Funding Interval）

Price 2 = Index Price + 30 Minutes Moving Average
** Moving Average = MA [（Bid 1 + Ask 1）/ 2 − Index Price]
This Update on Price 2 Calculation:
Existing Price 2 Calculation： 
Price 2 = Index Price + 30 Minutes Moving Average 
New Price 2 Calculation:
Price 2 = Index Price + 5 Minutes Moving Average

The update on the Price 2 calculation  is scheduled to be activated on October 17, 08:00 AM UTC, providing there is no significant deviation in the mark prices calculated in the old and new calculation methods. In the case a deviation occurs at the scheduled time point, the update will be done whenever the price deviation is considered  small enough  afterwards, without any further notice, to  minimize potential impact the update may have on traders.
 
If you are a perpetual contract trader, please adjust your trading strategy accordingly.

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Gate.io Team
October 16, 2023

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