How Does the “Mark Price” Used in Perpetual Futures Differ from a Standard Oracle Price Feed?

The standard oracle price feed typically reflects the spot price of the underlying asset from various exchanges. The "mark price" in perpetual futures, however, is often a calculated price designed to prevent manipulation and unnecessary liquidations.

It is usually a blend of the oracle's spot price and the time-weighted average price (TWAP) of the futures contract's funding rate. This smoothing effect makes the mark price less volatile and a more reliable reference for margin and liquidation.