【Revision Record 10/22】Standard Contract Index Price Calculation Optimization
【Revision Record 09/14】Standard Contract Index Price Calculation Optimization
Bingbon will adjust the Index Price Calculation method at 4pm on June 10th, Singapore Time (GMT+8) as follows:
The Bingbon Index Price Calculation collects spot market data from Binance, Huobi and OKEx. The weights of Huobi, Binance and OKEx indices all equal to 33.33%.
To avoid the malicious manipulation of the price or the instability of the exchange data source, before Bingbon makes a comprehensive calculation, Bingbojn will determine if the data sources of Huobi, Binance and OKEx are abnormal. If so, the abnormal data will not be included in the Index Price Calculation. Bingbon evaluates the data sources as follows:
- When the deviation between the latest price of any one of Huobi, Binance and OKEx and the median of all the three exchanges’ spot price is greater than the tolerance threshold (1%), it will be seen as an abnormal price that may be maliciously manipulated, and will not be included in the Index Price Calculation.
- The exchange that fails to update its data in 30s will be identified as an abnormal data source, and will not be included in the Index Price Calculation.
Protection measures for abnormal conditions, as follows:
- When the system removes the price reference of Exchange A, the price of Exchange A within the next 5 minutes will not be included in the Index Price Calculation, that is, the weight is 0; after the first 5 minutes of counting, if the price deviation of Exchange A is less than the reference 1% * 0.8 of the median exchange price, the system will re-include the exchange A price in the Index Price Calculation. If the conditions are not met, the weight of 0 will continue to be maintained for 5 minutes, and will not be included in the Index Price Calculation, and the above price judgment logic will be cycled for a longer period of time.
- When the price of Exchange A deviates significantly from other exchanges for a long time, the system will consider that the price of this exchange may lose its guiding significance and temporarily remove the price reference of this exchange.
10/22 Comprehensive Market Price Weight Adjustment Measures:
To ensure the accuracy of Bingbon's comprehensive market price,
Bingbon will make the following adjustments to the standard contract
comprehensive market price weight rules:
OKEx takes priority to be excluded due to in price deviation judgment filtering.
If OKEx, Huobi and Binance are still in the reference range after filtering,
then OKEx will be excluded;
If only 2 of OKEx, Huobi and Binance are within the reference range (which may include OKEx)
then there will be no additional filtering process.
- Due to the reasons mentioned above (It is possible that the market data from any one of Huobi, Binance and OKEx will be excluded from the calculation) as well as the difference in the three exchange’s speeds of publishing data, Bingbon does not ensure its market data is the same as the mean value of the data from the three exchanges.
- Since Binance does not support does not support BSV、PHA Spot Trading, the market data of BSV/USDT、PHA/USDT Trading will be based on the comprehensive calculation made up of the spot market data from Huobi and OKEx.
- Since OKEx does not support does not support AKRO、VET Spot Trading, the market data of AKRO/USDT、VET/USDT Trading will be based on the comprehensive calculation made up of the spot market data from Huobi and Binance.
Note: If there are only 2 exchanges in the reference range for the trading pair, no filtering will be done.
The Bingbon Index Price Calculation is within the range of the prices from all the three exchanges at any time, which authentically reflects the price trend of cryptocurrencies. The calculation of the Bingbon Index Price Calculation effectively avoids the possibility of the price being manipulated by a single platform, which proves the fairness of the Bingbon Index Price Calculation.
Digital asset derivatives trading is highly leveraged and risky, and may result in partial or total loss of account funds. Before conducting contract trading, investors must ensure that they understand the nature and rules of contract trading, and decide whether to participate in contract trading based on their investment experience, goals, financial status, and ability to bear risks.