Index Price

IBITTERS,

Index price is determined by the sum of the prices of spot trading pairs with high trading volume on mainstream spot exchanges, multiplied by the weights of each spot trading pair (symbolized as .XXXUSDT, where XXX represents the token abbreviation such as BTC, ETH, XRP, or EOS). Users can check the index price information and exchange sources from their respective contract information pages.

The index price is determined by 3 main variables: Current Quote, Equivalent Price of USDT Trading Pairs, and Real-time Weights.

1. Current Quote: This value represents the real-time quote of the underlying asset obtained directly from major spot exchanges.

2. Equivalent Price of USDT Trading Pairs: This value represents the price of spot trading pairs converted to USDT trading pairs based on the current quote.

3. **Real-Time Weight:** The index price is the weighted sum of the spot trading pairs from top global spot exchanges. The weight (Trade_WtO) is based on the 4-hour trading volume of six popular spot trading pairs, combined with their respective current quotes, to determine their weighted impact on the overall index price calculation. For clarity, we'll use platforms A, B, C, D, E, and F.

*Example:
- Suppose the ETHUSDT index includes the ETH/BTC trading pair from exchange A with a current quote of 0.1. If the price of BTC/USDT on IBIT platform is currently $20,000, then the USDT trading pair equivalent price would be $2,000, calculated as follows:
- Current Quote × BTC/USDT = 0.1 × 20,000

Index Price Calculation:

Index Price = (A Trading Pair Spot Price × A Trading Pair Weight) + (B Trading Pair Spot Price × B Trading Pair Weight) + (C Trading Pair Spot Price × C Trading Pair Weight) + (D Trading Pair Spot Price × D Trading Pair Weight) + (E Trading Pair Spot Price × E Trading Pair Weight) + (F Trading Pair Spot Price × F Trading Pair Weight)

A Trading Pair Weight = A Trading Pair 4-hour Trading Volume / [A Trading Pair 4-hour Trading Volume + B Trading Pair 4-hour Trading Volume + C Trading Pair 4-hour Trading Volume + D Trading Pair 4-hour Trading Volume + E Trading Pair 4-hour Trading Volume + F Trading Pair 4-hour Trading Volume]

To ensure stability in index price during market fluctuations, the following price protection mechanisms are introduced:

1. If the deviation between the spot price of any major trading pair and the midpoint price of all sources exceeds 5%, the pair will be temporarily excluded from the index price calculation until its price deviates within 3% of the midpoint price for five consecutive minutes. However, specified major trading pairs are exempt from this rule.
2. If two or more spot prices of major trading pairs deviate by more than 5% from the midpoint price, the index price will remain as the volume-weighted average of all price sources.
3. To exclude exchanges with liquidity issues or service interruptions, if no spot trading pair has been traded on an exchange for over 15 minutes, the pair will be excluded from the index price calculation. Once trading activity resumes, it will be included again.
4. If there is a delay of more than 5 seconds between spot prices and real-time trading, the trading pair will be temporarily excluded from the index price calculation. Once the delay is resolved, the trading pair will be re-included in the index price calculation.
5. In extreme market conditions or abnormal fluctuations in trading pair prices, IBIT reserves the right to adjust price sources or weights without prior notice.

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