1. What is the spot index price?

 

The spot index price aims to measure the price of the underlying digital asset. BTCC's USDT margin contracts are priced in USDT index prices.

To ensure that the index price accurately reflects the fair spot price of each cryptocurrency, it is typically calculated as a weighted average of the spot prices obtained from mainstream exchanges. The averaging mechanism ensures that the index remains representative, effectively reducing the impact of price anomalies from any single exchange.

2. Calculating the Spot Index Price

 

A. For each index price, the corresponding price of the trading pair is retrieved in real-time from specified exchanges. The data retrieval frequency is subject to the API rate limits set by these exchanges.

B. Exchanges undergoing system maintenance or those that have not updated their latest price during a specified time period will not be included in the calculation of the latest price update. The update frequency of each index may vary.

C. If valid data is not available from all exchanges, the data retrieved from each exchange is generally weighted as follows:

• When data from 3 or more exchanges is available, it will be weighted according to preset weight values. If the price from any exchange deviates more than 2% from the median price of other exchanges, the price from that exchange will be adjusted to 98% or 102% of the median value, depending on whether it is too high or too low.
  
  
• When data from 2 exchanges is available, they will be equally weighted.
  
  
• When data from only 1 exchange is available, it will be taken as the spot index price.
  
  
• BTCC may independently take various measures to control systemic risk. These measures include adjusting, adding, removing, and/or replacing the spot price components of exchanges to avoid significant deviations in these index components during periods of high market volatility, which may cause market disruption. As these measures may affect the price, position, and margin ratio of user orders, they may increase the risk of liquidation for users. Users should closely monitor the spot index price and margin levels and take precautionary measures, including reducing positions and supplementing margin to mitigate potential liquidation risks in their accounts. BTCC will not be liable for any losses or damages caused by risk control measures.