How Is the Index Price Protected from Exchange Outages or Manipulation?
The Index Price is protected by being a weighted average of the spot prices from several major, reliable exchanges. If one exchange experiences an outage or a sudden, anomalous price movement (a manipulation attempt), its influence on the overall Index Price is diluted or removed entirely.
This multi-source calculation ensures a robust and tamper-resistant reference price.
Glossar
Index Price
Derivation ⎊ Index price construction for crypto derivatives requires selecting a representative basket of underlying assets and calculating a weighted average based on established market capitalization or volume metrics.
Exchange Outages
Disruption ⎊ Exchange outages within cryptocurrency, options, and derivatives markets represent systemic risk events capable of propagating across interconnected trading venues and asset classes.
Anomalous Price Movement
Deviation ⎊ Anomalous price movement within cryptocurrency, options, and derivatives markets signifies a departure from statistically expected price behavior, often indicating informational inefficiencies or shifts in market sentiment.