How Is the Mark Price Calculation Different for Perpetual Futures versus Traditional Futures?

For perpetual futures, the Mark Price is calculated to anchor the contract's price closer to the spot market, typically involving a funding rate component and an index price. Traditional futures contracts, which have an expiration date, often use a more straightforward calculation based on the last traded price and the basis of the futures contract, without the complex funding rate mechanism.

The perpetual Mark Price aims to reduce divergence from the underlying asset's price.