> ## Documentation Index
> Fetch the complete documentation index at: https://docs.pacifica.fi/llms.txt
> Use this file to discover all available pages before exploring further.

# 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 USDT denominated prices from major exchanges.

|     CEX     | Weights |
| :---------: | :-----: |
|   Binance   |    2    |
|     OKX     |    1    |
|    Bybit    |    1    |
| Hyperliquid |    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](/api-documentation/api) or contact our support via [Contact Us](/other/contact-us).