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How Does Price Manipulation Risk Increase without a Mark Price System?

Without a stable mark price system, liquidations would rely on the last traded price. A malicious actor could use a small amount of capital to execute a large, temporary trade that artificially spikes or crashes the last traded price.

This manipulated price could then trigger mass liquidations, allowing the manipulator to profit at the expense of liquidated traders.

What Is the Difference between Mark Price and Last Traded Price?
Why Is the Mark Price Used in the Funding Rate Calculation Instead of the Last Traded Price?
How Does the Mark Price Mechanism Protect against Temporary Market Manipulation?
Does the Final Settlement Price Necessarily Equal the Last Traded Price of the Futures Contract?