BLADE’s indices represent the underlying spot prices for perpetuals contracts and are used to calculate both basis payment rates and unrealized profits and losses.
Every perpetuals contract on BLADE maps to a corresponding BLADE index. For example, the underlying index price for the BTC/KRW contract is the BTC/KRW index and the underlying index price for the ZEC/USDT contract is the ZEC/USDT index.
BLADE’s indices are computed every second by pulling real-time price data from cryptocurrency spot exchanges which are selected for their trustworthiness, resiliency and liquidity. In addition, index composition (i.e. the specific spot exchanges used) will vary depending on the contract and may change over time.
BLADE’s index rules exist to protect users by preventing liquidations caused by market manipulation or erroneous price data.
- In the base case, each index is comprised of data from three cryptocurrency spot exchange
- In the base case, constituents (up to two) will be removed from an index if its spot price deviates by more than 2.00% from the median of all three spot exchanges
- When two constituents remain, a constituent will be removed from an index if its spot price deviates from the previous index price by more than 3.00% and by a greater percentage than the other constituent
- Index prices will be clamped to +/-1% of the previous index price when only one or two constituents remain
- All constituents are always equally weighted
BLADE will make every effort to maintain three constituents for every index. If a constituent is removed from an index, the constituent will be manually reviewed before being added back to the index.