Mark Price is calculated using the following formula:

$\text{Mark Price} = \text{Index Price} + \text{MA}(5M, \text{Basis})$

Mark Price=Index Price+MA(5M,Basis) Where:

• Index Price: Represents the benchmark value of the underlying asset derived from constituent exchanges.
• Basis: Calculated as
  $\frac{\text{Best Bid} + \text{Best Ask}}{2} – \text{Index Price}$ 

  2Best Bid+Best Ask​−Index Price

• MA(5M, Basis): Averages the Basis calculated every second over a 5-minute period.

Additional Notes:

• MA(5M, Basis): Ensures that Mark Price adjusts gradually to market changes over a short time frame, preventing abrupt fluctuations.
• Market Conditions: In extreme market conditions where Mark Price may significantly deviate from the spot price, Flipster reserves the right to set Mark Price equal to the Perpetual Swap List Price to protect traders’ interests.