In order to ensure that the spot index price reasonably reflects the fair spot market price of each token, we will select token pairs from 3 mainstream exchanges as the index weight components for each contract token, and design exception handling logic. If the market deviates significantly or the market of an exchange is interrupted, BKEX will automatically remove the data of exchange from the index, that is, it will no longer participate in the index calculation until the transaction returns to normal, ensuring that when the price of a single exchange deviates greatly, the index fluctuation is normal. within the range.
The BKEX risk control system will regularly evaluate the relevant indicators of each exchange, and may adjust the index. Any adjustments will be announced on the official website.
BKEX automatically temporarily removes the exchange from index calculations when the following conditions are triggered:
Timeliness: The trading information/order book obtained from the constituent exchanges has not been updated or changed for 15 minutes. This is used to weed out exchanges with insufficient liquidity, network problems, and out of service.
Validity: The median deviation between the BTC spot trading price obtained from the Component Exchange and the BTC spot transaction price of all reference exchanges that meet the timeliness verification is greater than 3%. This is used to exclude exchanges with abnormal prices.
Spot Index Price Calculation Logic
a. Real-time access to the spot price of the token pair on all index constituent exchanges of the token
b. Exchanges that have not been traded for a period of time due to system maintenance or the latest trading price and volume will be invalidated and will not participate in the calculation this time.
c. Determine how many remaining valid exchange data are currently available:
≥3: Effective exchange data are weighted by equal weights (if the price of an exchange deviates by more than 3% from the median price of all exchanges, the exchange price will be calculated according to the median * 0.97 or the median * 1.03 calculate)
=2: effective exchange data weighted by equal weight.
=1: directly take the price of the remaining valid exchange as the index price.