Oracle Price & Mark Price
Pacifica’s perpetual contracts use a decentralized Oracle Price to accurately value positions and determine funding rate and is a component of Mark Price. This Oracle Price protects traders by reducing manipulation risks and ensuring market stability. Mark Price is used for liquidations, margin requirements and Unrealized PnL.
Oracle Price Calculation
The oracle price is updated every 3 seconds and calculated as a weighted average of prices from major centralized exchanges (CEX). For assets not listed on centralized exchanges, the oracle uses a Time-Weighted Average Price (TWAP) from decentralized exchanges (DEX).
Binance
2
OKX
1
Bybit
1
Uses of Oracle Price on Pacifica
The Oracle Price is crucial for several Pacifica exchange operations:
Funding Rates: Calculations rely on the Oracle Price to maintain alignment with spot markets.
Mark Price Calculation: Oracle price serves as a component of Mark Price to prevent market manipulation and ensure the accuracy of settlements.
Uses of Mark Price on Pacifica
The Mark Price is the median value of: 1. Oracle (spot) price 2. The median of best bid, best ask, and last trade on Pacifica 3. Perpetual price from major exchanges
The Mark Price is used for:
Liquidation Calculations: By using the median value of the 3 Mark Price components, Pacifica ensures fair and accurate liquidations.
Margin Requirements: Both initial and maintenance margins are determined using the Mark Price.
Unrealized PnL: Open positions are marked-to-market using the Mark Price.
Transparency & Reliability
Pacifica provides transparent and verifiable Oracle Prices available directly through our trading interface or via API endpoints, ensuring trust and accountability.
For further details or technical questions, refer to our API documentation or contact our support via Contact Us.
Last updated