Index Price
The reference price of a digital asset derived from external spot markets.
What is Index Price?
The index price on a Perp DEX is the benchmark price of a digital asset, typically aggregated from multiple centralized or decentralized spot exchanges (e.g., Binance, Coinbase, or Uniswap) to reflect its current market value. For example, GMX might use a weighted average of Bitcoin’s spot prices from top exchanges to calculate its BTC index price, ensuring it aligns with the broader market.
This price is used as a reference for calculating funding rates and determining whether a position is profitable or at risk of liquidation. Unlike the mark price, which is adjusted for fairness in Perp DEX trading, the index price is more directly tied to external market data. Oracles like Chainlink or Pyth provide real-time index price feeds to ensure accuracy and prevent manipulation.
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