How Does the “Mark Price” Calculation Affect Liquidation Triggers?

The mark price is an estimate of the true value of a futures or perpetual contract, typically derived from the spot price and the funding basis, rather than the last traded price. Exchanges use the mark price, not the last price, to calculate the unrealized P&L and trigger liquidations.

This prevents market manipulation ("wicks") from unfairly triggering liquidations, but a sustained divergence still triggers them.