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、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 all exchange prices fail to obtain, the corresponding trading pair price of the Billance contract will be used as the index price until the index price component exchange data is obtained normally.
- 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.
Billance Team