Spot index prices
What is a spot index price?
Spot Index price aims to measure the price of an underlying cryptocurrency.
OKX’s USDT-margined contracts are denominated in USDT index price, USDC-margined contracts are denominated in USDC index price, while coin-margined contracts use the USD-equivalent spot index price of the underlying cryptocurrency.
To ensure the index prices accurately reflect each token’s fair spot price, they are ordinarily calculated as weighted averages of spot prices taken from mainstream exchange(s). The average mechanism is designed to ensure that the index remains representative, effectively mitigating the influence of anomalous price deviations originating from a single exchange.
2. Calculating the spot index price A. For each index price, retrieve the corresponding trading pair’s price from the designated exchanges in real-time. The frequency of data retrieval is subject to the API rate limits set by these exchanges. B. Exchanges that underwent system maintenance or didn’t update their latest price during a specified time period won’t be taken into calculation for the latest price updates. The update frequency is different for each index. C. If not all exchanges are offering valid data, then data taken from each exchange will be ordinarily weighted as follows.*
When data from 3 or more exchanges are available, they will be weighted by their pre-set weighted values. If an exchange’s price deviates more than 2% from the median price of the rest of the exchanges, that exchange’s price will be taken at 98% or 102% of the median, depending on whether it’s too high or too low.
When data from 2 exchanges are available, they will be weighted equally.
When data from only 1 exchange is available, it will be taken as the spot index price.
* OKX introduces various measures at its sole discretion to control systematic risks. Such measures include adjustments, additions, deletions and/or substitution of constituent exchange spot prices to avoid market disruption usually caused by substantial deviation of such index constituent(s) in a highly volatile market. As such measures may affect the price, position, and margin ratio of a user's order, there could be an increased risk of users being liquidated. Users should closely monitor the spot index price and their margin levels and take precautionary measures, including reducing their positions and topping up the margin against potential liquidation risk in their accounts. OKX will not be liable for any compensation or other legal liabilities for the loss or damage caused by the risk-control measures.
3. What can impact the spot index price?
Users should keep in mind that the spot index price will be affected by all of the factors that may at the time affect spot prices in the relevant markets for the constituent exchange(s) of the index. Such factors include, among other things, applicable laws, political and socioeconomic events, regulations and trading rules, the marketmaking and order processing systems of those markets, the liquidity and efficiency of those markets, and the prices and price behavior of futures contracts on that index or a related index.