Bullet
  • Introduction
  • Bullet Network
    • Design Goals
    • Architecture
      • Sequencer
      • Full & Light Nodes
      • Zero-knowledge Virtual Machine
      • State Database
      • Data Availability
      • Bridge
      • Oracle
      • Gas & Paymaster
      • Wallet Abstraction
    • Network Specifications
    • Build on Bullet
      • REST/WS APIs
      • BulletSVM
    • Audits
  • BulletX (Exchange)
    • Products
    • Architecture
      • Orderbook
      • Unified Margin Engine
      • Lending Engine
      • Liquidation
      • Insurance Fund & ADL
      • Funding
      • Price Indices
      • Order Types & TP/SL
      • Fees
      • Vaults
    • Contract Specifications
  • Tokenomics
    • Bullet Token
    • ZEX Token Migration
  • FAQs
    • Frequently Asked Questions
  • Campaigns
    • Testnet Trading Cup
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  • Oracle Price
  • Key Functions:
  • Implementation:
  • Mark Price
  • Key Functions:
  • Implementation:
  1. BulletX (Exchange)
  2. Architecture

Price Indices

Bullet utilizes two key price indices: the Oracle Price and the Mark Price, allowing for fair and accurate references and exchange calculations.

Oracle Price

The Oracle Price provides a reliable reference to the spot market value of an asset.

Key Functions:

  • Funding Rate Calculation: Used to calculate funding rates for perpetual swaps, aligning them with spot market conditions.

  • Lending Position Liquidations: Serves as the reference price for determining liquidation thresholds in our lending markets.

Implementation:

Sourced from reputable external providers. For details, refer to Oracle.

Mark Price

The Mark Price represents the fair value of a perpetual contract, crucial for risk management and preventing unnecessary liquidations.

Key Functions:

  • Margin Calculations: Used to evaluate account margin and collateral, providing a stable assessment of position value.

  • Futures Liquidation Price Determination: The primary trigger for liquidations on perpetual contracts, mitigating liquidations due to short-term volatility.

  • Unrealized PNL Marking: Calculates unrealized profits and losses on open perpetual positions for a consistent view.

  • Trigger Order Execution: Activation price for trigger orders on perpetual contracts is compared against the Mark Price.

Implementation:

The Mark Price is the median of the following, updated every few seconds:

  1. Oracle Price + 150-second EMA of (Order Book Mid-Price - Oracle Price)

  2. Median of Best Bid, Best Ask, Last Trade

  3. Median of Binance, OKX, Bybit, and Hyperliquid perpetual mid-prices

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Last updated 1 month ago