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Disclaimer: This FAQ Page is for general information and educational purposes only. It does not constitute legal terms or any form of legal agreement between you and Binance. It should not be construed as financial, legal or other professional advice. The information on this page may be outdated. For legal terms applicable to Futures and Options Trading Services, please refer to the Terms of Use, the Exchange Rules (including the Exchange Procedures) and the Clearing Rules (including the Clearing Procedures) which come into effect on 5 January 2026. Additional terms and conditions will also be set out in the Contract Specifications applicable to the relevant Derivatives contract.
The Mark Price is a mechanism used in crypto futures trading to ensure a fair and accurate pricing for Futures contracts.
The Price Index is used to mitigate risks arising from price volatility and market manipulation by providing a more stable reference point. Instead of using the asset's last price, the Price Index takes into account the price of the asset across multiple exchanges.
To learn about the differences between the Mark Price and the Last Price, refer to What Is the Difference Between a Futures Contract’s Last Price and Mark Price.
On Binance Futures, the Mark Price of a contract is determined by various factors, including the contract’s Last Price, the bid1 and ask1 series from the order book, the funding rate, and a composite average of the asset's spot price on major crypto exchanges.
The Price Index is used to calculate the Mark Price and is based on the weighted average spot price of the asset across multiple crypto exchanges.
The Price Index is a core component of the Mark Price and represents the weighted average value of the underlying asset across multiple major spot exchanges. It reflects the fair market value of the Futures contract by aggregating prices to mitigate volatility and manipulation risks. The Price Index is continuously updated to account for any changes in the asset’s spot price or the exchange weightings used in the calculation.
At Binance, the Price Index for USDⓈ-M Futures contracts includes prices from a broad range of exchanges, such as Binance, KuCoin, OKX, HitBTC, Gate.io, Ascendex, MEXC, Coinbase, Kraken, Bitget, Bitfinex, Bybit, PancakeSwap (BNB Chain), Uniswap (Ethereum), Raydium (Solana) and Aster. The Binance Futures Last Price is also included as a constituent of the Price Index as determined by Binance in its sole discretion.
From 2025-02-10, PancakeSwap (BNB Chain), Uniswap (Ethereum) and Raydium (Solana) constituents will be available in contracts which are listed from 2025-02-10 onwards, subject to availability and price feed stability.
Binance reserves the right to change the constituents of the Price Index from time to time without notice.
You can view the real-time Price Index here.
Price Index = Sum of (Weight Percent of Exchange A * The Symbol’s Spot Price on Exchange A + Weight Percent of Exchange B * The Symbol’s Spot Price on Exchange B + … + Weight Percent of Exchange N * The Symbol’s Spot Price on Exchange N)
Where:
Please note: In the event of extreme price volatility or significant deviation from the Price Index, Binance will undertake additional protective measures, including but not limited to changing the constituents of the Price Index and using smoothed prices for volatile constituents.
Binance applies additional protections to safeguard against poor market performance during spot exchange outages or connectivity issues:
For example, if the median price of BTCUSDT index on Exchange A is 20,000 USDT and the price deviates by +7%, it will be capped at 20,600 USDT (20,000 * 1.03). Conversely, if the deviation is -6%, the accounted value will be 19,400 USDT (20,000 * 0.97). This adjustment will occur immediately after the spot price exceeds this price deviation threshold. The exchange-computed price value will be readjusted to its original value once the price value falls back within the 3% deviation threshold from the median price of all price sources. However, this rule doesn’t apply to certain designated indexes.
Symbol | Deviation Cap |
BNBUSDC | 1% |
BNBUSDT | 1% |
BTCUSDC | 1% |
BTCUSDT | 1% |
ETHUSDC | 1% |
ETHUSDT | 1% |
SOLUSDT | 1% |
USDCUSDT | 1% |
XRPUSDT | 1% |
FOLKSUSDT | 1% |
BEATUSDT | 1% |
For real-time updates, go to the latest exchange reference on the Price Index for real-time updates.
Please note:
The Mark Price offers a better estimate of a contract’s “true” value compared to Perpetual Futures prices, as it is less volatile in the short term. Binance uses the Mark Price to prevent unnecessary liquidations and discourage market manipulations by bad actors.
On Binance Futures, the Mark Price is calculated by taking into account several factors. These include the Last Price of the Futures contract, the bid1, and ask1 series from the order book, the funding rate, and a composite average of the underlying asset's spot price on major crypto exchanges.
The calculation of the Mark Price is closely linked to the Funding Rate and vice versa. Since unrealized PnL is the key factor in triggering liquidations, it is crucial that its calculation is accurate to prevent unnecessary liquidations. The underlying asset for the Perpetual contract represents the contract’s “true” value. The Price Index represents an average of prices from major markets, it serves as the primary component of the Mark Price.
Mark Price = Median (Price 1, Price 2, Contract Price)
Where:
For example, if the funding period is set to 8 hours, and the last funding fee charge occurred 2 hours ago, the time until the next funding would be 6 hours.
Please note: The funding fee is exchanged between long and short-position holders, with Binance acting as a neutral intermediary in the transaction.
The Moving Average (30 seconds basis) is calculated as the average of 30 data points over a 30 seconds period. The data point is calculated every 1 second by averaging the bid and ask prices and then subtracting the Price Index.
Moving Average (30 seconds basis) = Sum of [(Bid1_i + Ask1_i) / 2 - PI_i] / 30
Where:
For more details, refer to Price Index for each USDⓈ-M Futures contract.
If Price 1 < Price 2 < Contract Price, then Price 2 will be used as the Mark Price.
Please note: The Mark Price may deviate from the spot price during extreme market conditions or deviations in price sources. In such cases, Binance will take additional protective measures, such as calculating Mark Price = Price 2.
During system upgrades or downtime, when all trading activities are paused, the system will continue calculating the Mark Price using the standard formula. However, the Moving Average (30 seconds basis) in Price 2 will be set to 0 until the system returns to normal.
Moving Average = ((Bid1 + Ask1) / 2 - Price Index), calculated every second over a 30 seconds interval.
Mark Price before 2020-09-25, 07:29:59 (UTC) = Price Index + Moving Average (30 seconds basis)
Mark Price on 2020-09-25, 07:30:00 - 07:59:59 (UTC) = Average of the Price Index, calculated every second between 07:30:00 and 07:59:59 (UTC) on the delivery day.
Mark Price = Average of last 10 seconds trade prices, calculated every second.
If there are less than 21 transaction prices in the 10 seconds interval, the average of the Price Index will be based on the last 20 transaction prices.
Pre-market Perpetual Futures contracts will be converted to standard Perpetual Futures contracts when a stable Price Index can be derived from the spot market(s) (as determined by Binance). The Mark Price will gradually converge from pre-market trading Mark Price to the standard Mark Price calculation (Mark Price = Median (Price 1, Price 2, Contract Price)) during the transition period.
Trading function is not affected during the transition period. Open orders and positions will not be cancelled.
Mark Price = Median (Price 1, Price 2, Contract Price)
