Dear valued customers,
In order to protect users' interest and eliminate malicious trading activities, we have launched the mark price system for margin trading at 12:00 Feb 19, 2020 (UTC).
1. What is Mark Price
- Mark price is the reasonable price calculated with spot index price and reasonable basis.
- After the mark price system is launched, we will use the mark price to replace the last traded price to calculate users’ margin ratio. This can effectively avoid users from being forced-liquidated when the last traded price is maliciously manipulated within a short period of time.
= Spot index price + EMA (basis)
= Spot index price + EMA [(spot best bid + spot best ask) / 2 - spot index price]
Mark price takes into account the moving averages of both spot index price and basis. The moving average mechanism can smooth out abnormal price fluctuation within a short period of time to reduce the chance of forced-liquidation.
a. Margin ration calculation
Margin ratio will be calculated with the latest mark price (instead of the last traded price).
b. Estimated forced-liquidation price
When the mark price (instead of the last traded price) has reached the estimate forced-liquidation price, forced or partial liquation will be triggered.
Thank you for your continued support and we assure you of our best services at all times.
Feb 19, 2020 (UTC)