Fair price is derived from the index price and funding rate, helping reduce unnecessary liquidation risks and ensuring a fair trading environment
Fair Price Calculation Formula
The fair price is used to determine unrealized profit and loss (Unrealized PNL) and to avoid unnecessary liquidations caused by short-term market volatility.
The fair price is calculated using the index price, funding rate premium, mid-price basis, and last price. The formula is as follows:
Fair Price = Median (Funding Rate Premium, Mid-Price Basis Fair Price, Last Price)
Funding Rate Premium = Index Price × [1 + Latest Funding Rate × (Hours Until Next Funding Settlement / Funding Settlement Period in Hours)]
Mid-Price Basis Fair Price = Index Price + Moving Average of Basis (Specified Period) = Index Price + Moving Average of [(Best Bid Price + Best Ask Price) / 2 − Index Price]
Last Price is the most recent Futures transaction price, updated in real time.
This ensures that the fair price follows the broader market trend rather than temporary fluctuations on any single exchange.
Buy BTC_USD on MEXC at the Lowest Fees
Buying BTC_USD (undefined) on MEXC means every dollar goes further! As one of the lowest-fee crypto platforms, MEXC helps you cut costs from your very first trade.
Trading Fee (Maker/Taker)
-
FAQ
Why Does MEXC Use Fair Price Instead of Last Price?
Using the last price could trigger unnecessary liquidations during volatile markets. Fair price smooths out price swings, reflects true market value more accurately, and protects users.
How Does Fair Price Affect Liquidation?
Does Fair Price Affect My Trading Orders?
What Is Futures Trading?
Is Futures Trading Beginner-Friendly?
Can I Start Futures Trading with $100?
Can I Make $100 a Day with Crypto Futures Trading?
