For months, BitMEX has been using a TradeBlock XBX Index as the foundation for its mark price system. Now it is using what seems to be a more open and consistent system.
"Available 24/7, it will be a weighted index based on some of the most popular bitcoin exchanges: Bitfinex, OKCoin USD, and Bitstamp — though no one exchange may have a weight over 50%.
To keep traders as well-informed as possible, the index price is updated every five seconds.
Kaiko will re-calculate the weights on the last Friday of every month, with data based on the previous 30 days’ volumes...
If a single exchange’s API goes down it is not de-weighted, but the price and weight are held constant until the next update. The weights are fixed, so users always know what is in the index — and it is very clear how API outages are handled."
Here's how its historical weighting looks between the three exchanges:
"Available 24/7, it will be a weighted index based on some of the most popular bitcoin exchanges: Bitfinex, OKCoin USD, and Bitstamp — though no one exchange may have a weight over 50%.
To keep traders as well-informed as possible, the index price is updated every five seconds.
Kaiko will re-calculate the weights on the last Friday of every month, with data based on the previous 30 days’ volumes...
If a single exchange’s API goes down it is not de-weighted, but the price and weight are held constant until the next update. The weights are fixed, so users always know what is in the index — and it is very clear how API outages are handled."
Here's how its historical weighting looks between the three exchanges:
The basics are that every month they decide what weightings between Bitfinex, OKcoin, and Bitstamp to use and then that serves as the basis for the index that the BitMEX contracts settle on as the spot price.
There's still a "fair basis" applied to the Index value to reflect the market and orderbook depth on BitMEX contracts, this has not changed.
The change will be live end of April.
There's still a "fair basis" applied to the Index value to reflect the market and orderbook depth on BitMEX contracts, this has not changed.
The change will be live end of April.
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