At BingX, we are committed to providing a fair trading environment for all our users. To that end, we offer a dual-price mechanism for Perpetual Futures that protects users from malicious liquidations as a result of significant deviations between the price on the platform and the mainstream spot price. This helps prevent unnecessary losses and ensures a secure trading experience for our users.
1. What is Dual-Price Mechanism?
The conventional single-price mechanism can result in a mass liquidation of traders’ positions when the market experiences sharp fluctuations and the market price on a futures exchange deviates significantly from the spot price.
BingX dual-price mechanism consists of the mark price and the last price. Even if the mark price reaches the estimated liquidation price, a trader's position will not get liquidated as long as the last price does not reach the liquidation level. This mechanism effectively protects traders from potential forced liquidations that may occur due to abnormal price fluctuations caused by market manipulations.
2. How to Calculate the Prices?
2.1 Calculation of Last Price
The last price is the real-time filled price on the order book in BingX Perpetual Futures.
2.2 Calculation of Mark Price
Mark Price = Median (Price 1, Price 2, Last Price)
Price 1 = Index Price
Price 2 = Index Price + Moving Average (5-minute Basis)
*Moving Average (5-minute Basis) = Moving Average [(Best Bid + Best Ask) / 2 − Index Price], with values updated every second at a 5-minute interval.
*Median: If Price 1 < Price 2 < Last Price, Price 2 will be taken as the Mark Price.
1. BingX will use the optimal mark price to reduce the risk of traders' positions being liquidated in volatile markets.
2. BingX reserves the right to update the mark price selection criteria in real time according to market conditions without prior notice.
BingX Operation Team
BingX Official Channels
Cryptocurrency prices are subject to high market risk and price volatility. You should only invest in products that you are familiar with and where you understand the associated risks. You should carefully consider your investment experience, financial situation, investment objectives and risk tolerance and consult an independent financial adviser prior to making any investment. This material is for reference only and should not be construed as financial advice. Past performance is not a reliable indicator of future performance. The value of your investment can go down as well as up, and you may not get back the amount you invested. You are solely responsible for your investment decisions. BingX is not responsible for any losses you may incur.
BingX attaches great importance to compliance and has strictly abided by local regulations. Please obey local laws and regulations in your country or region. BingX reserves the right in its sole discretion to amend, change, or cancel this announcement at any time and for any reason without prior notice.