Skip to main content

What Is the Index Price Used for Calculating the Funding Rate?

The index price is a fair, real-time price of the underlying asset, typically calculated as an average of the asset's price across several major spot exchanges. This multi-exchange average is used to prevent manipulation and ensure the funding rate is based on a robust, true market price, not a single exchange's potentially skewed price.

How Do Exchanges Attempt to Prevent Manipulation of the Final Settlement Price?
What Is the Typical Frequency of Funding Rate Payments on Major Crypto Exchanges?
What Is the Difference between the Mark Price and the Index Price in a Perpetual Swap?
What Is the “Index Price” in Perpetual Swaps?