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      • 1. What is the methodology to calculate the mark price (or reference price)?
      • 2. Can we have some illustrations on the mark price methodology?
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  1. Algo Trading
  2. FAQs on DBOE On-Chain CLOB logic

1. What is the methodology to calculate the mark price (or reference price)?

PreviousFAQs on DBOE On-Chain CLOB logicNext2. Can we have some illustrations on the mark price methodology?

Last updated 10 months ago

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The mark price will be calculated as below:

For Spot

If there are price oracles setup for the pairs then the mark price will be the ratio of the two prices coming out from the price oracles;

Otherwise, the mark price will be the volume-weighted price of the most recent 15 transactions or its initial price set by the creator of the pair.

For Option

Mark price will be derived using with an on-chain volatility surface. On-chain volatility surface will be updated periodically by referencing and aggregating from external sources

⁉️
Black Scholes formula