How Does the Mark Price Mechanism Protect against Temporary Market Manipulation?

The mark price mechanism protects against temporary manipulation by using a smoothed, time-weighted average that incorporates both the spot price from a reliable oracle and the contract's funding rate history. Since the mark price is not an instantaneous spot price, a brief, artificial price spike created by a flash loan or large trade on a single exchange will not immediately affect it.

This stability prevents unfair liquidations based on temporary market anomalies.