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What Is the Difference between an Index Price and a Mark Price on a Perpetual Swap?

The index price is a volume-weighted average of the underlying asset's spot price across multiple reference exchanges, used to calculate the funding rate and the final settlement of the perpetual swap. The mark price is an internal price derived from the index price and the basis of the swap, used by the exchange for calculating unrealized profit/loss and for triggering liquidations.

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