The calculation of Mark Price involves Index Price, which is designed to represent the true value of the underlying asset price.
Mark Price is calculated as:
Mark Price = Index Price + MA(5M, Basis), where Basis = (Best Bid + Best Ask) / 2 - Index Price
Note: MA(5M, Basis) averages Basis calculated per each second over 5 minutes.
Note: Mark Price may deviate from spot price under extreme market conditions. In that scenario, Flipster may enforce that Mark Price = Perpetual Swap List Price so as to protect trader interests.